Light & Wonder (ASX:LNW) reported a "strong" second-quarter result with adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) of $383 million, rising 9% from a year earlier and coming in 5% above consensus estimates, Jarden said in a late Wednesday note.

The company also reaffirmed its full-year 2026 guidance at mid-to-high single-digit AEBITDA growth.

While the first half of the year delivered annual AEBITDA growth of 7%, Jarden expects the pace to moderate slightly through the second half given a tougher comparison for the fourth quarter.

"Additionally on the outlook, the capital management posture was notably more deliberate, in our view, with an explicit commitment to favor de-levering," the investment firm said.

Jarden believes the pushback on Light & Wonder remains anemic topline growth following a soft second-quarter revenue print relative to expectations. This is partly structural with softer outright sales, but also somewhat deliberate given the mix shift toward high-quality recurring revenue that takes time to compound.

The investment firm also sees "a longer-term path to accelerating top-line growth, predicated on the more efficient use of content across jurisdictions and channels."

Jarden maintained a buy rating on Light & Wonder while raising the target price to AU$187 from AU$182.