Jefferies Discusses Gaming Market In Louisiana (BYD)

Jefferies & Co. is out with a research report on the gaming market in Louisiana. Included in the report is Boyd Gaming BYD, which Jefferies rates at Hold. In a note to investors, Jefferies writes, "On May 10 and 11, Jefferies & Co. hosted an investor trip to Lake Charles and Baton Rouge, Louisiana, where we met with property management teams at BYD's Delta Downs, ISLE's Isle of Capri Lake Charles, and PNK's L'Auberge du Lac and Baton Rouge development. Management commentary suggests that the Lake Charles' customer spending trends should continue to improve with limited impact from rising commodity and gas prices. Management teams across all properties also agree that legislation supporting gaming in Texas is highly unlikely for this legislative session due to its low-priority nature during a very busy census year and rising oil prices, which could defray some of the budget pressure that might otherwise motivate an extension beyond May. We believe this bodes well for the Lake Charles operators in particular as it provides a meaningful timeframe for the casinos to continue to build their databases from Houston, Beaumont, San Antonio and even Austin patrons while also strengthening existing loyalties and driving operations even as development of Mojito Pointe gets underway." Shares of BYD gained 19 cents yesterday to close at $10.23, a gain of 1.9%.