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UPDATE - Barclays Downgraded Boyd Gaming (BYD); Valuation and Atlantic City Competition

February 9, 2012 4:29 PM EST
BYD Hot Sheet
Rating Summary:
    2 Buy, 12 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
UPDATE - Barclays downgraded Boyd Gaming (NYSE: BYD) from Overweight to Equalweight, price target lowered from $10 to $8.

Analyst, Felicia R. Hendrix, had two main reasons to cut her rating on the stock: 1) upcoming competition in Atlantic City; and 2) valuation. Year-to-date, Boyd shares have increased 24.3% versus a 7.3% increase in the S&P 500 and the third highest in our coverage universe (behind MGM (NYSE: MGM) and Sands China (NYSE: LVS)); the stock is now the most expensive among the three regional gaming operators.

Barclays lowers FY12 EPS estimate from $0.41 to $0.37 and FY13 from $0.47 to $0.42.

Shares fell over 3% in the trading session.

Also, this morning, Nomura Securities initiated coverage on Boyd with a 'Neutral', saying a moderate recovery in the Las Vegas Locals market to be offset by continued deterioration in Atlantic City.

To see more ratings on BYD, Click Here



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