Barclays maintains Boyd Gaming underweight, target at $7

Published 03/03/2025, 20:46
Barclays maintains Boyd Gaming underweight, target at $7

On Monday, Barclays (LON:BARC) reiterated its Underweight rating on Boyd Gaming Corporation (NYSE:BYD), with a steady price target of $7.00. Currently trading at $75.64, BYD (SZ:002594) has received mixed analyst reviews, with targets ranging from $75 to $100. InvestingPro data reveals that 6 analysts have recently revised their earnings expectations downward for the upcoming period. The firm’s analysis highlighted the strength of BYD’s international sales, noting a significant year-over-year growth. The gaming company reported an impressive 318,200 deliveries for the month, marking a 7% increase month-over-month and a 161% surge year-over-year. Notably, Boyd Gaming achieved more than 65,000 vehicle deliveries in overseas markets for the second consecutive month, with 67,000 vehicles delivered in February. This represents a modest 1% increase from the previous month and a substantial 188% rise compared to the same period last year. The company maintains impressive gross profit margins of 61.86% and has demonstrated solid revenue growth of 5.13% over the last twelve months.

The analyst at Barclays pointed out that BYD’s production capabilities are set to expand significantly in the coming years. BYD’s production facilities in Indonesia and Hungary are projected to become operational by the end of 2025, and the company’s Turkish plant is expected to follow by the end of 2026. These new facilities will complement BYD’s existing plants in Uzbekistan and Thailand.

With the upcoming expansion, BYD is poised to have an annual production capacity of approximately 650,000 units in overseas countries. Barclays believes that these developments will provide a robust foundation for BYD to further grow its international business. The company’s strategic moves to establish a more substantial presence in international markets could potentially enhance its global competitiveness and market share.

In other recent news, Boyd Gaming Corporation has announced an increase in its quarterly dividend to $0.18 per share, up from the previous $0.17. This move reflects the company’s confidence in its financial stability and commitment to delivering value to its shareholders. The dividend will be paid on April 15, 2025, to shareholders on record as of March 17, 2025. In analyst updates, Morgan Stanley (NYSE:MS) downgraded Boyd Gaming from Overweight to Equalweight, citing a more balanced risk-reward scenario and setting a new price target of $81. Meanwhile, Stifel raised its price target for the company to $82, maintaining a Hold rating, while Mizuho (NYSE:MFG) increased its target to $86 and continued to recommend the stock as Outperform. Mizuho’s analysis was based on Boyd Gaming’s recent financial results, which exceeded expectations, with a notable increase in market share. These developments highlight the mixed sentiment among analysts regarding Boyd Gaming’s future performance.

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