iGaming Industry's Compelling & Unappreciated Growth Prospects Help Boyd Gaming Win Analyst Attention

Credit Suisse analyst Benjamin Chaiken initiated coverage on Boyd Gaming Corp BYD with an Outperform rating and a price target of $82.
The re-rating reflected the iGaming industry's robust and unappreciated growth, driving upside to estimates and compelling valuation.
The analyst thinks the Downtown market could inflect higher as corporate demand on the Strip returns, driving spillover into adjacent markets like Downtown Las Vegas.
In addition to Downtown market-wide growth, BYD is investing $50 million in its Freemont property, which should drive a healthy ROI.
BYD is spending $100 million to move its Treasure Chest casino from a riverboat to a newly developed land-based asset adjacent to the existing property. The analyst thinks new amenities, better access, and a more cohesive casino floor could drive a 20-30% ROI, with the Pala Interactive acquisition should be a slight tailwind in '23.
In mid-'23, BYD will move its Stardust B2C iGaming product from FanDuel onto the newly acquired Pala Interactive, thus capturing 100% of the economics, serving as an incremental tailwind.
BYD's Tribal management contract for the Sky River Casino will likely drive incremental management fees.
Price Action: BYD shares traded higher by 1.40% at $59.24 on the last check Tuesday.
Photo Via Company

Analyst Calendar