JPMorgan analyst Daniel Politzer views Boyd Gaming’s (BYD) sale of its 5% stake in FanDuel for $1.755B as mixed. The deal represents a highly accretive multiple, but Boyd restructured its market access fees from a variable rate structure to fixed, the analyst tells investors in a research note. JPMorgan expects Boyd will maintain its capital allocation of share buybacks and a stable balance sheet following the sale. The firm also sees the FanDuel sale as a positive read-through to DraftKings (DKNG) and other online sports betting operators and a negative to market access fee providers such as Penn Entertainment (PENN).
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