Light & Wonder's (ASX:LNW) second-quarter results met expectations, with strong net installs easing concerns, modest guidance cuts reflecting manageable headwinds, and the Australian Securities Exchange only listing plus expanded buyback offering re-rating potential, Jarden Research said in a note on Thursday.

The company reported Wednesday second-quarter adjusted earnings of $1.58 per share, up from $1.42 a year earlier. Revenue for the three months ended June 30 was $809 million, compared with $818 million a year earlier.

The modest cuts to earnings guidance reflect manageable headwinds from the Grover acquisition and ongoing investments, while the ASX-only listing and expanded buyback offer re-rating potential and near-term share price support, per the note.

Jarden sees downside risks, including an economic or gaming slowdown, restrictive iGaming or land-based changes, talent retention challenges, rising competition, market share losses, declines in machine replacements, and adverse litigation outcomes.

Jarden Research reaffirmed a buy rating and price target of AU$188 on Light & Wonder.