Light & Wonder's (ASX:LNW) second-quarter results are expected to be broadly in line with expectations, with Jarden forecasting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $367 million, the investment firm said in a July 19 note.

Recurring revenue drivers continue to boost the company's earnings quality, and Jarden estimates Light & Wonder is on track for full-year adjusted EBITDA growth of around 6% to $1.53 billion.

The equity research firm expects the company's second-quarter gaming revenue to increase 8% year over year to $569 million, and also anticipates a sequentially better quarter on outright sales.

Light & Wonder's "revenue mix continues to improve in quality, with the recurring drivers maintaining momentum," Jarden said. It added that the company's underlying demand backdrop remains intact, with US land-based gross gaming revenue trends proving to be resilient.

The investment firm remains constructive on both Aristocrat Leisure (ASX:ALL) and Light & Wonder, but with a "strong preference" for the latter on valuation grounds, it said.

Jarden maintained a buy rating on Light & Wonder with a target price of AU$182.