Nomura Securities Maintains a 'Neutral' on Boyd Gaming (BYD); LV Gaming Revenues Remain Pressured
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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!
Nomura Securities maintains a 'Neutral' on Boyd Gaming (NYSE: BYD) price target of $7.00 (from $10.00).
Analyst, Harry Curtis, said, "LV Locals gaming revenues remain pressured by a heavy promotional environment. We now expect flat gaming revenue growth for the remainder of 2012 vs. our prior modest +1% growth. Higher pension costs also limit upside to LV Locals EBITDA. Reflecting the Q2 miss and our lower gaming revenue growth outlook in the Locals & same-store Midwest/South markets, our 2012 net EBITDA estimate is now $486m vs. prior $522m. We are factoring in BYD’s acquisition of Peninsula Gaming into our 2013 EBITDA estimate, which is now $700M vs. prior $539m (our prior 2013 estimate did not include the Peninsula Gaming acquisition, which is expected to close in Q4’12). We are assuming modest growth of ~1% from being part of the B-connected network, but keeping EBITDA margin unchanged at ~39-40% as BYD indicated there were very little cost synergy opportunities. We are rolling forward our valuation to 2013 estimates. Given the slower growth rate, we are lowering the EV/EBITDA multiple to ~7x from ~7.5x. This is also in line with the implied acquisition multiple of Peninsula Gaming."
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 $5.48 yesterday, with a 52 week range of $4.12-$9.81.
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Analyst, Harry Curtis, said, "LV Locals gaming revenues remain pressured by a heavy promotional environment. We now expect flat gaming revenue growth for the remainder of 2012 vs. our prior modest +1% growth. Higher pension costs also limit upside to LV Locals EBITDA. Reflecting the Q2 miss and our lower gaming revenue growth outlook in the Locals & same-store Midwest/South markets, our 2012 net EBITDA estimate is now $486m vs. prior $522m. We are factoring in BYD’s acquisition of Peninsula Gaming into our 2013 EBITDA estimate, which is now $700M vs. prior $539m (our prior 2013 estimate did not include the Peninsula Gaming acquisition, which is expected to close in Q4’12). We are assuming modest growth of ~1% from being part of the B-connected network, but keeping EBITDA margin unchanged at ~39-40% as BYD indicated there were very little cost synergy opportunities. We are rolling forward our valuation to 2013 estimates. Given the slower growth rate, we are lowering the EV/EBITDA multiple to ~7x from ~7.5x. This is also in line with the implied acquisition multiple of Peninsula Gaming."
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 $5.48 yesterday, with a 52 week range of $4.12-$9.81.
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