Nomura Securities Maintains a 'Neutral' on Boyd Gaming (BYD); Acquiring Peninsula Gaming for $1.45b

Nomura Securities maintains a 'Neutral' on Boyd Gaming (NYSE: BYD) price target raised from $9 to $10.

Analyst, Harry Curtis, said, "The acquisition will be funded with $200m of cash and $1.24bn in net debt (includes a $144m seller’s note). The acquisition multiple is ~7x, based on Peninsula’s trailing EBITDA of $109m for its four existing properties and annualized Q1’12 run rate for Kansas Star. Based on the trailing EBITDA figures, we estimate that Peninsula Gaming should add at least ~$206m to BYD’s net EBITDA, +37%. The acquisition should be favorable; however, we remain cautious on the AC market given our view that promotional activity may be fierce. We remain Neutral and prefer Buy rated Wynn (Nasdaq: WYNN), Las Vegas Sands (NYSE: LVS), and MGM (NYSE: MGM)."

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 $6.98 yesterday.

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