Shares of Boyd Gaming (NYSE: BYD) had been pointed greater early Tuesday following an improve of the inventory by a sell-side analyst.
Boyd Gaming’s Orleans On line casino. Argus Analysis upgraded the inventory on Tuesday. (Picture: KTNV)
In a brand new report back to shoppers, Argus analyst John Staszak lifted his ranking on the regional on line casino operator to “purchase” from “maintain” whereas setting a 12-month worth goal of $90. That suggests upside of twenty-two% from Monday’s closing worth of $73.76.
Over the long run, we anticipate Boyd’s working margin to extend because of favorable working leverage on the Las Vegas properties and a few of the regional casinos,” noticed Staszak. “Reflecting the corporate’s intensive improvement pipeline, our long-term earnings development charge estimate is 12%, down from a previous estimate of 18%.”
Las Vegas-based Boyd runs 10 gaming venues in its residence market, together with Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Fundamental Avenue Station, Sam’s City, Suncoast, and The Orleans. It additionally operates regional casinos in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.
Las Vegas, Different Markets Driving Optimistic Boyd View
In Las Vegas, Boyd is the dominant on line casino operator downtown, in addition to one of many largest names within the Las Vegas locals section.
Power in these segments coupled with vibrancy on the firm’s gaming venues within the Midwest and the South had been highlighted by Staszak. Particularly, Staszak talked about elevated foot site visitors on the Ameristar St. Charles and the Gold Coast, an off-Strip on line casino lodge in Las Vegas.
Boyd is furthering its regional range through a on line casino lodge in Norfolk, Va., a undertaking on which the corporate is partnering with the Pamunkey Indian Tribe. Floor was lately damaged on the location and a few analysts consider the $750 million venue serves the target of diminishing the chance of Boyd buying a longtime on line casino to bolster its mid-Atlantic footprint.
In Las Vegas, Boyd is enhancing the Suncoast and planning the Cadence Crossing On line casino — strikes that might show advantageous amid growing competitors within the locals’ section.
Boyd FanDuel Stake Heralded
Staszak additionally famous that Boyd is accruing advantages from its relationship with FanDuel, which is a unit of Flutter Leisure (NYSE: FLUT). Boyd owns the 5% of FanDuel not managed by the Irish gaming firm, and that’s an oft-overlooked name possibility for Boyd given FanDuel’s standing as the most important on-line sportsbook operator within the US.
Boyd has had a relationship with FanDuel for seven years and over that point, the latter’s worth has surged, that means the regional on line casino operator’s stake has achieved the identical. Boyd has its personal sports activities betting platform in Nevada the place FanDuel isn’t operational, and the 2 firms have a advertising relationship in different states.
Boyd entered Tuesday with a year-to-date achieve of 17.81%, making it certainly one of 2024’s best-performing gaming equities.
