Boyd Gaming Upgraded as Analyst Sees Value in Stock

Posted on: March 12, 2025, 07:26h. 

Last updated on: March 13, 2025, 11:20h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Boyd upgraded despite sluggish regional casino trends
  • Analyst calls the stock an “actionable long”

Shares of Boyd Gaming (NYSE: BYD) traded modestly higher Wednesday after the regional casino stock was upgraded by a sell-side analyst.

regional casino headcount
Boyd Gaming’s Orleans Hotel & Casino. An analyst upgraded the stock on. Wednesday. (Image: YouTube)

In a new report to clients, Susquehanna analyst Joseph Stauff boosted his rating on Boyd to “positive” from “neutral” while trimming his price target on the stock to $77 from $79. That reduced price target still implies potential upside of 14.5% from Wednesday’s closing price of $67.21.

While Stauff pared estimates on Las Vegas-based Boyd due to rising recession fears and challenging weather in some of the operator’s markets, he’s broadly constructive on the name, calling it an “actionable long” idea among gaming stocks.

Boyd runs 10 gaming venues in its home market, including Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Main Street Station, Sam’s Town, Suncoast, and The Orleans. It also operates regional casinos in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.

Boyd Stock Trading at Compelling Discount

Boyd stock is higher by 6.41% over the past year, and while that performance trails the S&P 500, it’s well ahead of the S&P MidCap 400 Index and the returns of many other casino operators.

Even with Boyd outperforming the broader complex of gaming equities, Stauff said the stock is trading at an “attractive discount,” adding that the company is a “great” brick-and-mortar operator.

Boyd is furthering its regional diversity via a casino hotel in Norfolk, Va., a project on which the company is partnering with the Pamunkey Indian Tribe. Ground was recently broken on the site and some analysts believe the $750 million venue serves the objective of diminishing the likelihood of Boyd acquiring an established casino to bolster its mid-Atlantic footprint.

In Las Vegas, Boyd is enhancing the Suncoast and planning the Cadence Crossing Casino — moves that could prove advantageous amid increasing competition in the locals’ segment. Last week, the company announced Cadence Crossing will replace Jokers Wild in Henderson, which has been part of the Boulder Highway gaming scene for three decades.

Wall Street Mostly Bullish on Boyd Stock

Gaming stocks, including Boyd, are under pressure to start 2025 as President Trump’s tariff gambits have spooked global investors while sparking fears of a potential recession — a toxic brew for the discretionary spending-dependent gaming industry.

Despite those headwinds, Wall Street is broadly constructive on Boyd with eight of the analysts covering the stock rating it the equivalent of “buy” or “strong buy.” Another eight rate it “hold” and none have “sell” grades on the shares.

The consensus price target of $84.64 implies possible upside of nearly 26% from Wednesday’s closing price.