UPDATE: Deutsche Bank Resumes Coverage on Boyd Gaming Corporation with Buy Rating
In a report published Friday, Deutsche Bank resumed coverage on Boyd Gaming Corporation (NYSE: BYD) with a Buy rating.
Deutsche Bank noted, “The acquisition of Peninsula Gaming is a significant positive for Boyd Gaming. With this transaction, Boyd Gaming has achieved material diversification of its portfolio from the local Las Vegas Locals market and has put in place a clear long-term plan to meaningfully de-lever the balance sheet, when the two entities ultimately combine. But for now, Peninsula Gaming will remain as an unrestricted subsidiary of Boyd Gaming and will pay management fees to the parent. It is important to note that the cost to Boyd to borrow the incremental $200 million that was used to complete the Peninsula transaction of approximately $12 million is significantly less than the management fee generated ($21 million).”
Boyd Gaming Corporation closed on Thursday at $5.34.
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