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On Tuesday, Susquehanna’s analysts increased their price target on Boyd Gaming (NYSE:BYD) to $77 from the previous $69, while maintaining a Neutral rating on the company’s shares. The revision follows the anticipation of Boyd Gaming’s fourth-quarter 2024 earnings, which are expected to be disclosed in post-market trading on Sunday. Currently trading at $76.82, near its 52-week high of $78.58, Boyd Gaming has demonstrated strong momentum with a 39.65% return over the past six months. InvestingPro analysis shows the stock is currently fairly valued, with analyst targets ranging from $69 to $88.
Susquehanna’s analysis suggests that Boyd Gaming will report fourth-quarter revenue and EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs) of approximately $1 billion and $367 million, respectively. These figures align with the consensus on revenue and are about 2.5% higher for EBITDAR. The forecast has been slightly adjusted due to performance across different segments, with Las Vegas locals meeting expectations, stronger regional results, and weaker online and managed segments compared to the same quarter in the previous year. InvestingPro data reveals impressive gross profit margins of 61.96% and aggressive share buyback programs, with 12 additional ProTips available for subscribers.
The company’s stock has seen a notable increase of 6% year-to-date, following a recovery from a low near $50 in late May 2024. Market expectations for 2025 are centered on several key areas: potential regional growth, anticipated returns from an increased project capital of $350 million in 2025 (up from $175 million in 2024), and more favorable comparisons for the Las Vegas locals market starting from the second quarter of 2024.
The updated price target reflects Susquehanna’s neutral stance but acknowledges the potential for upside based on these factors. The firm’s estimates remain unchanged aside from the adjustment to the price target. Susquehanna’s commentary provides insight into the factors influencing the revised target and the current outlook for Boyd Gaming as the market anticipates the company’s upcoming financial results.
In other recent news, Boyd Gaming Corporation has seen significant developments in its financial strategy. The company’s stock rating was recently upgraded from Hold to Buy by Jefferies, with a significant increase in the price target, reflecting a positive outlook for the company’s growth. David Katz of Jefferies noted the company’s strategic investments and anticipated easing of competitive pressures in Las Vegas as key growth drivers.
Additionally, Boyd Gaming’s commitment to share repurchases was highlighted, with an estimated $700 million in buybacks expected for 2025, contributing to an estimated 9% year-over-year earnings per share growth. The company’s digital presence, particularly its association with FanDuel, was also noted as an undervalued aspect of its business strategy.
In a separate development, Boyd Gaming Corporation announced an additional $500 million for its share repurchase program, increasing the total available repurchase authority to approximately $843 million. The company also declared a quarterly cash dividend of $0.17 per share. These recent developments indicate a strong financial strategy aimed at enhancing shareholder value.
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