Boyd Gaming Stock Surges Following Argus Analyst Upgrade
Boyd Gaming (NYSE: BYD) received a significant boost after Argus analyst John Staszak upgraded the stock to "buy" from "hold" with a $90 price target, suggesting a 22% upside potential.
Orleans Casino sign
The upgrade is based on several key factors:
- Expected increase in operating margins due to favorable leverage at Las Vegas properties
- Long-term earnings growth rate estimate of 12%
- Strong performance in Las Vegas locals market and downtown segments
- Robust regional casino operations across multiple states
Boyd Gaming's current operations include:
- 10 Las Vegas venues including Aliante, California, Cannery, and The Orleans
- Regional presence in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania
- Upcoming $750 million casino hotel project in Norfolk, Virginia
- Planned improvements to Suncoast and development of Cadence Crossing Casino
Notable strengths highlighted by Argus include:
- Increased foot traffic at Ameristar St. Charles and Gold Coast
- Strategic 5% ownership stake in FanDuel
- Seven-year partnership with FanDuel benefiting from sports betting growth
- Independent sports betting platform in Nevada
The company's stock has shown strong performance with a 17.81% year-to-date gain, positioning it among the top-performing gaming equities in 2024. The positive outlook is supported by Boyd's diverse portfolio and strategic expansion plans in both established and emerging markets.
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