Boyd Gaming Intrinsic Value – Morgan Stanley Upgrades Boyd Gaming with Higher Price Target and “Overweight” Rating
October 27, 2024
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Boyd Gaming ($NYSE:BYD) is a company that operates casinos, hotels, and other entertainment properties across the United States. Recently, Boyd Gaming’s stock received an upgrade from financial services firm Morgan Stanley. Additionally, they assigned the stock an “overweight” rating, which indicates that they believe it will outperform the overall market. It suggests that Morgan Stanley has confidence in the company’s future performance and believes that its stock price will continue to rise. This could be due to a number of factors, such as strong financials, industry trends, or potential growth opportunities. One possible reason for Morgan Stanley’s positive outlook on Boyd Gaming is the company’s recent acquisition of the IP Casino Resort Spa in Biloxi, Mississippi. This property has been performing well and is expected to contribute to Boyd Gaming’s overall growth and profitability.
In addition, the gaming industry as a whole has been experiencing a rebound in recent months as pandemic restrictions ease and people are more willing to travel and visit casinos. Furthermore, Boyd Gaming has been actively expanding its online gaming presence, which could also be a contributing factor to Morgan Stanley’s upgrade. The company has partnerships with major online sports betting and online casino platforms, positioning itself to capitalize on the growing popularity of online gaming. Overall, Morgan Stanley’s upgrade of Boyd Gaming is a positive indicator for the company’s future prospects. It reflects confidence in its current operations, as well as potential for growth in the near future. This could make Boyd Gaming an attractive investment opportunity for those looking to enter the gaming industry or diversify their portfolio.
Market Price
Morgan Stanley, a leading investment bank, has recently upgraded their rating on Boyd Gaming, a major player in the gaming and hospitality industry. This upgrade comes with a higher price target and an “overweight” rating, indicating their bullish outlook on the stock. This news has caused quite a stir in the market, with BOYD GAMING stock experiencing a slight decline of 0.62% on Wednesday. This is significant as BOYD GAMING’s stock opened at $64.02 and closed at $64.0, slightly below the last closing price of $64.4. Despite this small dip, the overall sentiment remains positive with the stock still trading at a strong price point. This is a testament to Morgan Stanley’s confidence in Boyd Gaming’s future performance and potential for growth. One of the key reasons is the company’s strong financial performance in recent years.
Boyd Gaming has consistently reported solid earnings and revenue growth, showcasing its resilience and ability to navigate through challenging market conditions. This, coupled with their strategic expansion plans and focus on customer experience, has impressed analysts and investors alike. The higher price target also reflects Morgan Stanley’s belief that Boyd Gaming’s stock has room for further growth. With an “overweight” rating, they are signalling that they expect BOYD GAMING to outperform its peers in the industry. This vote of confidence from a reputable institution like Morgan Stanley is likely to attract more investors to the stock, which can potentially drive up its price. This news highlights the company’s strong financials and future potential, making it an attractive investment option in the gaming and hospitality industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Boyd Gaming. More…
| Total Revenues | Net Income | Net Margin |
| 3.74k | 620.02 | 19.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Boyd Gaming. More…
| Operations | Investing | Financing |
| 945.33 | -422.31 | -615.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Boyd Gaming. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.31k | 4.54k | 18.07 |
Key Ratios Snapshot
Some of the financial key ratios for Boyd Gaming are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.7% | 74.8% | 24.7% |
| FCF Margin | ROE | ROA |
| 15.3% | 32.7% | 9.2% |
Analysis – Boyd Gaming Intrinsic Value
After conducting thorough analysis on the state of BOYD GAMING‘s welfare, I have determined that the company is in a relatively stable and healthy position. Through various financial indicators and market trends, it can be seen that BOYD GAMING has been able to maintain consistent growth and profitability. One key point to note is the intrinsic value of BOYD GAMING’s share, which has been calculated at around $72.7 using our proprietary Valuation Line. This indicates that the company’s stock is currently undervalued by approximately 11.9%. This provides a potential opportunity for investors to purchase the stock at a discounted price and potentially earn a higher return in the future. This suggests that the stock may be slightly undervalued, making it an attractive investment option. Overall, after considering various factors such as financial indicators, market trends, and valuation, it can be concluded that BOYD GAMING is in a favorable position. As an analyst at GoodWhale, I am confident in recommending BOYD GAMING as a potential investment opportunity with the potential for future growth and returns. More…
Peers
Boyd Gaming Corporation is an American gaming and hospitality company based in Paradise, Nevada. The company continues to be run by the Boyd family under the stewardship of CEO Sam Boyd. Boyd Gaming operates 29 gaming properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.
– Penn National Gaming Inc ($NASDAQ:PENN)
As of 2022, Penn National Gaming Inc has a market cap of 5.21B and a ROE of 16.23%. The company is a leading operator of casinos and racetracks in the United States. Penn National Gaming’s properties include Hollywood Casino at Charles Town Races and Hollywood Casino Bangor. The company also owns and operates the Argosy Casino in Alton, Illinois.
– Caesars Entertainment Inc ($NASDAQ:CZR)
Caesars Entertainment Inc is a gaming company. It has a market cap of 9.46B as of 2022 and a Return on Equity of 21.84%. The company owns and operates casinos and resorts. It also provides gaming, hotel, dining, entertainment, and other services.
– Ballys Corp ($NYSE:BALY)
Bally’s Corporation is a gaming and hospitality company that owns and operates casinos, hotels, and spas across the United States. The company has a market cap of 1B as of 2022 and a return on equity of 3.13%. Bally’s Corporation is a publicly traded company listed on the New York Stock Exchange. The company was founded in 1969 and is headquartered in Reno, Nevada.
Summary
Morgan Stanley has increased their price target for Boyd Gaming from $74.00 to $78.00 and upgraded the stock to “overweight” in their recent report. This suggests that the investment bank believes the stock will outperform the market in the near future. This may be due to positive financial performance or future growth potential. Investors should keep an eye on Boyd Gaming and consider adding it to their portfolio based on Morgan Stanley’s bullish outlook.
However, as with any investment decision, it is important to conduct thorough research and consider other factors before making any decisions.
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