Boyd Gaming Shares Rise After Argus Analyst's Buy Rating Upgrade
Boyd Gaming stock received a notable upgrade from Argus analyst John Staszak, who raised the rating to "buy" from "hold" with a $90 price target, suggesting a 22% upside potential.
Orleans Casino sign
Key Highlights:
- Operating margin expected to increase due to favorable leverage in Las Vegas properties and regional casinos
- Long-term earnings growth rate estimate adjusted to 12% from 18%
- Company operates 10 gaming venues in Las Vegas and multiple properties across nine other states
- Strong performance in Las Vegas locals segment and downtown market
- Increased foot traffic at Ameristar St. Charles and Gold Coast locations
Expansion and Development:
- New $750 million casino hotel project in Norfolk, Virginia with Pamunkey Indian Tribe
- Enhancements to Suncoast property
- Planning of Cadence Crossing Casino
FanDuel Partnership Benefits:
- Owns 5% stake in FanDuel
- Seven-year partnership yielding significant value growth
- Maintains own sports betting platform in Nevada
- Marketing relationship with FanDuel in other states
Financial Performance:
- Stock up 17.81% year-to-date
- Among top-performing gaming equities in 2024
- Strong presence in Las Vegas locals and downtown segments
- Positive outlook for regional casino operations
The upgrade reflects Boyd Gaming's robust operational performance, strategic expansion plans, and valuable FanDuel partnership, positioning the company for continued growth in the gaming industry.
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