Boyd Gaming Stock Surges Following Argus "Buy" Rating Upgrade
Boyd Gaming (NYSE: BYD) received a significant 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 Upgrade Factors:
- Expected increase in operating margin due to favorable leverage at Las Vegas properties
- Long-term earnings growth rate estimate of 12%
- Strong performance in Las Vegas locals and downtown segments
- Robust regional casino operations in multiple states
- Strategic 5% ownership stake in FanDuel
Current Operations:
- Las Vegas: 10 gaming venues including Aliante, California, Cannery, Fremont, Gold Coast
- Regional presence: Operations in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania
- Market dominance in downtown Las Vegas and locals segment
Expansion and Growth:
- New $750 million casino hotel development in Norfolk, Virginia (partnership with Pamunkey Indian Tribe)
- Enhancements to Suncoast property
- Planning of Cadence Crossing Casino
- Seven-year profitable relationship with FanDuel, benefiting from its market leadership in US sports betting
Financial Performance:
- Year-to-date stock gain of 17.81% in 2024
- Strong foot traffic at key properties including Ameristar St. Charles and Gold Coast
- Diversified revenue streams across multiple markets and segments
The upgrade reflects Boyd Gaming's solid operational performance, strategic market positioning, and continued expansion efforts in both traditional gaming and sports betting markets.
Related Articles
Atlantic City Casino Workers Urge Gov. Murphy to Address Smoking Ban in State Address
