Janney Boosts Target on Boyd (BYD) to $8 Following Q4; Sees Sales, Vegas Trends as Positives

March 5, 2013 9:55 AM EST
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Janney Captal Markets is maintaining Boyd Gaming (NYSE: BYD) at Neutral, but raising its Fair Value estimate from $6.50 up to $8 following fourth-quarter results issued Monday.

Janney's Brian McGill noted that quarterly weakness was attributed to economic and political issues, as expected. McGill noted that Boyd' comments around Las Vegas Locals was "constructive," saying that the company saw increased visitation due to adjusted marketing programs and refreshed slots floors. EBITDA for the segment came in at $31.5 million, versus the consensus of $33 million. Boyd noted that business declines were observed early in the quarter and moderated in December. Trends were improving in the first quarter.

MMcGill views the sale of Echelon and Dania Jai-Alai properties favorably, given that both were valued at zero. Echelon will net $157 million for Boyd, while Dania will tack on $65 million of net cash. McGill sees Boyd reducing its debt load with the proceeds.

On Echelon, McGill notes that $16 million in preopening costs will be eliminated, while Boyd will be able to generate about $760 million in tax loss carry forwards.

Boyd shares are down 6.5 percent Tuesday after gaining 14.4 percent Monday.

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 $7.39 yesterday.

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