Nomura Securities Maintains a 'Neutral' on Boyd Gaming (BYD); Cutting Estimates and Price Target
Tweet
Share
E-mailGet Alerts BYD Hot Sheet
Price: $63.59 -0.02%
Rating Summary:
20 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
20 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
Nomura Securities maintains a 'Neutral' on Boyd Gaming (NYSE: BYD) price target lowered from $10.50 to $9.00.
Analyst, Harry Curtis, said, "Q4 Locals market growth of 4% was driven by heavy promotional activity by a competitor. We are encouraged that BYD demonstrated a second consecutive quarter of net revenue YOY growth (Q4’s +0.4% and Q3’s +0.2%), following 15 consecutive quarters of YOY decline, but the recovery is likely to be frustratingly slow. We are reducing our Las Vegas Locals 2012 net revenue growth to 2% YOY from 4%. As a result, 2012E EBITDA is now $159M, from $166M. Separately, we are now looking for 20.4% Borgata EBITDA margin in 2012 vs. prior 19.7%, on higher flow-thru from renovated rooms. The competition from Revel in Atlantic City (soft opens in April 2012) is the primary reason why we remain Neutral on the stock. Our PT goes to $9, down from $10.50 using 7.5x on wholly-owned NTM EBITDA and 7x on BYD’s 50% share of Borgata NTM EBITDA."
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 $8.61 yesterday.
Analyst, Harry Curtis, said, "Q4 Locals market growth of 4% was driven by heavy promotional activity by a competitor. We are encouraged that BYD demonstrated a second consecutive quarter of net revenue YOY growth (Q4’s +0.4% and Q3’s +0.2%), following 15 consecutive quarters of YOY decline, but the recovery is likely to be frustratingly slow. We are reducing our Las Vegas Locals 2012 net revenue growth to 2% YOY from 4%. As a result, 2012E EBITDA is now $159M, from $166M. Separately, we are now looking for 20.4% Borgata EBITDA margin in 2012 vs. prior 19.7%, on higher flow-thru from renovated rooms. The competition from Revel in Atlantic City (soft opens in April 2012) is the primary reason why we remain Neutral on the stock. Our PT goes to $9, down from $10.50 using 7.5x on wholly-owned NTM EBITDA and 7x on BYD’s 50% share of Borgata NTM EBITDA."
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 $8.61 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boston Scientific (BSX) PT Raised to $83 at Stifel
- TE Connectivity (TEL) PT Raised to $150 at Stifel
- Equity Residential (EQR) PT Raised to $70 at Evercore ISI
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst PT ChangeRelated Entities
NomuraSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
