Despite sluggish regional casino trends, Boyd Gaming (NYSE: BYD) received an upgrade from a sell-side analyst, with shares trading modestly higher on Wednesday.
In a new report to clients, Susquehanna analyst Joseph Stauff raised his rating on Boyd Gaming to “positive” from “neutral,” while adjusting his price target to $77 from $79. This reduced price target still indicates a potential upside of 14.5% from Wednesday’s closing price of $67.21.
Though Stauff lowered his estimates for Las Vegas-based Boyd Gaming due to rising recession fears and challenging weather conditions in some of the operator’s markets, he remains broadly optimistic, describing Boyd Gaming as an “actionable long” idea among gaming stocks.
Boyd Gaming operates ten gaming venues in its home market, including Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Main Street Station, Sam’s Town, Suncoast, and The Orleans. Additionally, the company has regional casinos in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.
Boyd Stock Trading at a Compelling Discount
Boyd Gaming’s stock has increased by 6.41% over the past year. While this performance trails the S&P 500, it surpasses the S&P MidCap 400 Index and the returns of many other casino operators.
Despite Boyd’s outperformance in the broader gaming equities sector, Stauff notes that the stock is trading at an “attractive discount,” emphasizing the company’s strength as a “great” brick-and-mortar operator.
Boyd Gaming is also enhancing its regional diversity with a new casino hotel project in Norfolk, Virginia, in partnership with the Pamunkey Indian Tribe. The $750 million venue aims to diminish the likelihood of Boyd acquiring an established casino to expand its mid-Atlantic footprint.
In Las Vegas, Boyd Gaming is upgrading the Suncoast and planning the Cadence Crossing Casino — initiatives that could prove beneficial amid increasing competition in the locals’ segment. Recently, the company announced that Cadence Crossing will replace Jokers Wild in Henderson, which has been a part of the Boulder Highway gaming scene for three decades.
Wall Street Mostly Bullish on Boyd Stock
Gaming stocks, including Boyd Gaming, are under pressure at the start of 2025 due to President Trump’s tariff policies, which have unsettled global investors and sparked recession fears—a challenging environment for the discretionary spending-dependent gaming industry.
Despite these headwinds, Wall Street remains broadly optimistic about Boyd Gaming. Eight analysts covering the stock rate it as “buy” or “strong buy,” while another eight rate it as “hold.” Notably, none have assigned “sell” ratings to the shares.
The consensus price target of $84.64 implies a potential upside of nearly 26% from Wednesday’s closing price.
