Mizuho raises Boyd Gaming stock price target to $86

On Friday, Mizuho (NYSE:MFG) Securities expressed confidence in Boyd Gaming Corporation (NYSE:BYD), with analyst Ben Chaiken increasing the price target to $86 from the previous $83, while reiterating an Outperform rating on the stock. Currently trading at $66.04, InvestingPro analysis suggests the stock is slightly undervalued, with analyst targets ranging from $72 to $88. The revision follows Boyd Gaming’s recent financial performance, which surpassed analysts’ expectations in several key metrics.

Boyd Gaming reported a total property EBITDA of $361.3 million, exceeding Mizuho’s projection of $349.4 million and the Street’s forecast of $352.4 million. The company’s impressive performance is reflected in its robust financial health metrics, with InvestingPro data showing a strong gross profit margin of 61.86% and a healthy EBITDA of $1.22 billion over the last twelve months. The performance of Boyd’s different segments also showed positive results, with the Locals segment achieving $106.5 million, closely aligned with the Street’s expectation of $106.7 million. The Downtown segment reported $20.9 million, surpassing both Mizuho’s estimate of $17.8 million and the Street’s $17.9 million. Additionally, the Midwest and South segments combined delivered $183.2 million in EBITDA, again outperforming the estimates which stood at $180.8 million.

Chaiken noted that Boyd Gaming’s business trends in April remained stable, defying some of the broader narratives in the industry. This stability is noteworthy given the current economic climate. Furthermore, Boyd Gaming appears to have experienced minimal disruption to its construction and development cycle due to tariffs, which contrasts with potential concerns regarding competitor Churchill Downs Incorporated’s (NASDAQ:CHDN) investment opportunities.

Another significant move by Boyd Gaming was the repurchase of $328 million worth of shares during the quarter, amounting to 4.5 million shares. The company’s balance sheet remains underlevered, with a leverage ratio of less than 3 times, providing ample flexibility for further buybacks and investment opportunities.

Chaiken concluded that Boyd Gaming’s regional business appears stable and possibly growing, with several investment opportunities that may not be fully appreciated by the market. The analyst’s maintained Outperform rating and revised price target reflect this positive outlook on the company’s prospects.

In other recent news, Boyd Gaming Corporation reported impressive financial results for the first quarter of 2025, surpassing both earnings and revenue expectations. The company’s earnings per share (EPS) reached $1.62, exceeding the anticipated $1.55, while revenues hit nearly $1 billion, outperforming the forecasted $977.18 million. These results highlight Boyd Gaming’s strong financial health and operational efficiency, driven by strategic property developments and growth in the online segment. Additionally, the company is focusing on future growth with plans for new developments, including the Cadence Crossing Casino (EPA:CASP) in Las Vegas and a $750 million resort project in Norfolk, Virginia. Boyd Gaming also maintains a strong balance sheet, supporting a $100 million quarterly share repurchase program. Despite economic uncertainties, the company remains confident in its ability to manage through challenges, bolstered by its diversified business and consistent customer base. Notably, the company has faced weather-related disruptions impacting results by $5 million, but continues to show resilience. Analyst feedback from firms like Deutsche Bank (ETR:DBKGn) indicates a positive outlook for Boyd Gaming, acknowledging its robust performance and strategic initiatives.

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