Supported by strength at its downtown Las Vegas venues, Boyd Gaming (NYSE: BYD) easily topped first-quarter estimates, sparking a smart labialise of bullish commentary from Wall Street analysts in the process.
The John C. Fremont Casino manipulator earned $1.71 a divvy up on revenue of $963.97 gazillion during the January through and through Mar period. Analysts expected earnings of $1.54 on sales of $889.59. On the back of those warm results, at least Phoebe sell-side analysts lifted their price targets on Boyd. That chemical group includes Stifel Steven Wieczynski, who increased his toll forecast on the regional casino operator to $83 from $81. That implies upside of well-nigh 25% from the Apr 25 close.
Comparisons start up to catch more difficult as we run through and through the midsection of 2023 but still with tougher comparisons, we still trust BYD should post strong results moving send on as we trust investor expectations across regional gaming remain somewhat benign,” Wieczynski wrote in a short letter to clients. “With a healthy, low-levered equilibrise sheet, BYD is the hone public figure to possess in any surroundings but to a greater extent so at present given the near-term remains an unknown.”
At the final stage of March, Boyd had hard cash on mitt of $263.5 one thousand thousand and debt of $3 billion. Its equilibrium shroud is indeed strong as highlighted by the repurchase of $106 trillion worth of its own shares during the Jan quarter. Boyd has $133 meg left hand on a antecedently proclaimed buyback plan.
Downtown Las Vegas Boosts Boyd
Boyd runs 10 gaming venues inward its rest home market, including Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Main Street Station, Sam’s Town, Suncoast, and The Orleans.
California, John Charles Fremont and Main Street Station are situated inwards downtown Las Vegas, which is a positive for the operator at a time when visitation to that surface area of Sin City is increasing.
“With to a greater extent people visiting Las Vegas, more of them are stopping by downtown during their stay. Fifty-eight percent of Las Vegas visitors reported they visited Downtown Las Vegas shoemaker's last year,” said Boyd CEO Keith Ian Douglas Smith on a conference call. “This increased visitation is benefiting all troika of our downtown properties.”
Smith also highlighted strength among Boyd’s long devoted Hawaiian visitors, noting that toy among those clients at the operator’s downtown venues jumped 10% year-over-year.
Main Street Station, which is crosswise the street from the California, is inwards the midst of renovations which are expected to follow completed later in 2023. When that happens, all III of Boyd’s downtown venues will experience been updated over the past tense 2 years.
In gain to its Las Vegas properties, Boyd runs 18 casino-hotels in nine other states.
Boyd Stock Discount Unwarranted
As Stifel’s Wieczynski pointed out, Boyd owns nearly all of its real estate, a 5% bet inward FanDuel and sports a intelligent equilibrize sheet, yet the buy in is inexpensive congenator to peers.
“We believe BYD should craft to a greater extent around a 7%-8% FCF give which would show shares are worth $80-$90, and again, this is not existence aggressive with our estimates,” added the analyst.
It doesn’t come out as though Boyd testament cloud its investment funds icon with an acquisition as Ian Smith told analysts on the call that there’s “nothing interesting to speak of” at the instant in terms of possible consolidation.
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