UPDATE: Morgan Stanley Reiterates on Boyd Gaming on Multiple Ways to Create Value
In a report published Tuesday, Morgan Stanley analyst Thomas Allen reiterated an Overweight rating on Boyd Gaming (NYSE: BYD), and raised the price target from $12.00 to $13.00.
In the report, Morgan Stanley noted, “We believe there are a number of ways that an activist could create value in BYD. One possibility is a potential OpCo/PropCo split, similar to PENN/GLPI. Our analysis based on our current 2015e EBITDA suggests that even in a bear REIT split scenario, this could drive the value of the stock to $16 (31% upside) and in a bull case, $26 (+121%). While headwinds for a split remain (e.g. high leverage, Boyd family ownership), we believe these are manageable. Reiterate Overweight.”
Boyd Gaming closed on Monday at $11.80.
Latest Ratings for BYD
|Sep 2014||Morgan Stanley||Downgrades||Equal-weight|
|Aug 2014||Brean Capital||Reiterates||Hold||Hold|
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