JPMorgan initiates Boyd Gaming stock coverage with neutral rating

Investing.com - JPMorgan initiated coverage on Boyd Gaming (NYSE:BYD) with a neutral rating and a $79.00 price target on Monday. The casino operator, currently trading at $76.41, has demonstrated strong financial health with a 61.6% gross profit margin and maintains a market capitalization of $6.2 billion.

The research firm cited Boyd Gaming’s "attractive/emerging growth pipeline" following strong return on invested capital at its Treasure Chest property as a positive factor in its assessment.

JPMorgan also highlighted the company’s capital return profile, noting that Boyd offers approximately $400 million in annual share repurchases, representing about 7% of its market capitalization.

The firm pointed to Boyd’s valuable 5% stake in FanDuel, which it estimates is worth approximately $13 per share, as another positive aspect of the company’s portfolio.

Despite these strengths, JPMorgan indicated that Boyd Gaming stock has been a relative outperformer year-to-date in 2025 and throughout 2024, with current valuation in line with historical levels, leading the firm to conclude that the risk/reward profile appears balanced with its $79 price target implying approximately 4% upside potential.

In other recent news, Boyd Gaming Corporation has reported impressive financial results for the first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $1.62, exceeding the expected $1.55, and reported revenues of nearly $1 billion, higher than the forecasted $977.18 million. Analysts at Mizuho (NYSE:MFG) Securities responded by raising Boyd Gaming’s stock price target to $86 from $83, maintaining an Outperform rating, citing the company’s robust financial performance as a key factor. Stifel also raised their price target for Boyd Gaming to $76 from $71, continuing a Buy rating, highlighting the company’s consistent performance and strong balance sheet.

Boyd Gaming’s different segments showed positive results, with the Locals segment achieving $106.5 million in EBITDA, closely aligned with expectations. The Downtown segment reported $20.9 million, surpassing estimates, while the Midwest and South segments delivered $183.2 million in EBITDA, again outperforming projections. The company also repurchased $328 million worth of shares during the quarter, amounting to 4.5 million shares, reflecting a strong commitment to returning capital to shareholders.

Boyd Gaming’s strategic property developments and online segment growth have been identified as key performance drivers. Despite some challenges, such as weather-related disruptions impacting Q1 results by $5 million, the company maintained strong property level margins at 40%. Furthermore, Boyd Gaming’s FanDuel equity stake is contributing significantly to the company’s valuation, enhancing its position in the gaming industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.