Credit Suisse Sees Boyd Gaming (BYD) In A Strong Position For Growth
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Price: $12.90 -2.12%
Rating Summary:
3 Buy, 13 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
3 Buy, 13 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade BYD Now!
Credit Suisse is maintaining their Outperform rating on shares of Boyd Gaming (NYSE: BYD) following their several meeting with CFO Josh Hirsberg. The firm believes that the company is poised to benefit from continued stabilization in the Las Vegas Locals business. They feel that low housing prices, no personal income taxes, and a favorable business climate may eventually reinvigorate population growth in Vegas, benefiting BYD's Locals franchise.
The firm reports that, "By permanently cutting cost out of the system during the downturn to adjust to the 'new reality' of the Locals market, the company is set to see a pick-up in margins with any uptick in revenues. For every $5 increase in spend per visit in the Locals market, EBITDA will rise $20m-$25m annually."
Outside of Vegas, the company is positioned in the sale process of MGM's Borgata stake and could potentially acquire that half of the property at an attractive multiple.
Credit Suisse's price target of $14 is based on an 8.0x multiple of our 2013 EBITDA estimate, discounted back to a one year forward point, plus ~$1 of value for excess real estate.
For more ratings news on Boyd Gaming click here and for the rating history of Boyd Gaming click here.
Shares of Boyd Gaming closed at $9.50 yesterday, with a 52 week range of $6.70-$14.85.
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The firm reports that, "By permanently cutting cost out of the system during the downturn to adjust to the 'new reality' of the Locals market, the company is set to see a pick-up in margins with any uptick in revenues. For every $5 increase in spend per visit in the Locals market, EBITDA will rise $20m-$25m annually."
Outside of Vegas, the company is positioned in the sale process of MGM's Borgata stake and could potentially acquire that half of the property at an attractive multiple.
Credit Suisse's price target of $14 is based on an 8.0x multiple of our 2013 EBITDA estimate, discounted back to a one year forward point, plus ~$1 of value for excess real estate.
For more ratings news on Boyd Gaming click here and for the rating history of Boyd Gaming click here.
Shares of Boyd Gaming closed at $9.50 yesterday, with a 52 week range of $6.70-$14.85.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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