Aegis Capital Starts Boyd Gaming (BYD) at Buy

Aegis Capital initiates coverage on Boyd Gaming (NYSE: BYD) with a Buy rating and a price target of $24.00.

Analyst David Bain commented, "We are initiating coverage of Boyd Gaming Corporation (“BYD”) with a Buy rating and $24 price target, implying a ~15% gain from the current price. BYD’s Las Vegas portfolio should benefit from strengthening Las Vegas macro trends and its regional gaming assets should benefit from improved consumer sentiment, lapsing competition and margin refinements. The above, combined with undemanding valuation, lead us to be positive on shares."

Commenting on why BYD is a Buy. "1) BYD is ~30% weighted to the Locals Las Vegas market (~40% to Las Vegas overall with its Downtown properties incorporated), where we see strong macro trends – the Las Vegas Locals market is BYD’s fastest growing business segment and is the division that leads its stock valuation; 2) Most of BYD’s regional markets should benefit from slightly better broad based consumer trends and lapsing competition (Mississippi, in particular); 3) BYD is re-looking at cost refinements and has previously shown significant traction in this regard – we see the same holding true to the benefit of CY17 estimates especially in its non-Las Vegas markets; 4) BYD carries an attractive mid-teens free cash flow yield and we believe will reduce leverage to 4.7x from 5.4x by the end of CY17."

For an analyst ratings summary and ratings history on Boyd Gaming click here. For more ratings news on Boyd Gaming click here.

Shares of Boyd Gaming closed at $20.86 yesterday.

You May Also Be Interested In

• BofA Securities Starts GE Vernova (GEV) at Neutral, 'Multiyear turnaround amid positive demand backdrop'
• Compass Minerals International (CMP) PT Lowered to $15 at Deutsche Bank
• Mr. Cooper Group Inc. (COOP) PT Raised to $87 at Jefferies