UPDATE: Nomura Raises PT on Boyd Gaming on Strong Growth Expectations
In a report published Wednesday, Nomura analyst Harry C. Curtis reiterated a Neutral rating on Boyd Gaming (NYSE: BYD), and raised the price target from $9.00 to $11.00.
In the report, Nomura noted, “Despite the muted Locals Q2 rev growth, we continue to expect stronger Locals growth in 2014. The underlying fundamentals remain on track, i.e., job gains and existing home price gains. BYD made the most optimistic forward regional commentary to date and expects to see ‘modest revenue growth in most of [its] markets.' We were impressed with Q2's margin strength as BYD focused on operating efficiencies. We are lifting our 2013 Locals EBITDA estimate to $141M from $135M and 2014 estimate to $159M from $149M on margin, as we expect higher flow-through from increased operating efficiencies. We believe yesterday's rally was partially driven by a short squeeze, as too much value is ascribed to a non-existent business at this point. We suspect the stock could drift back to the ~$11 range in the near-term.”
Boyd Gaming closed on Tuesday at $12.85.
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