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Hold Rating for Boyd Gaming: Stable Position with Limited Upside Amid Market Adjustments

Hold Rating for Boyd Gaming: Stable Position with Limited Upside Amid Market Adjustments

J.P. Morgan analyst Daniel Politzer has maintained their neutral stance on BYD stock, giving a Hold rating on July 11.

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Daniel Politzer’s rating is based on Boyd Gaming’s stable position as a regional operator with a strong capital return profile and a solid balance sheet. Despite these strengths, the Hold rating reflects a preference for other peers that present more compelling growth catalysts and potential upside in future estimates. Boyd Gaming’s current trading valuation is close to its historical average, which suggests limited immediate upside potential.
Additionally, the unchanged price target of $79 incorporates the expected proceeds from the sale of a 5% stake in FanDuel, as well as adjustments for lower forecasted earnings from online operations due to new market access agreements. The company’s valuation is supported by a sum-of-the-parts analysis, which considers various segments of its business and the net present value of management fees, while accounting for net debt adjustments.

In another report released on July 11, Stifel Nicolaus also maintained a Hold rating on the stock with a $87.00 price target.

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