Morgan Stanley Continues to Recommend Boyd Gaming Corporation

In a report published Thursday, Morgan Stanley analyst Thomas Allen reiterated an Overweight rating and $13.00 price target on Boyd Gaming Corporation BYD. In the report, Morgan Stanley noted, “We continue to recommend BYD for the potential value from a) US Online Gaming, b) a LV Locals recovery, and c) an OpCo/PropCo split. 1Q results and a ~1% reduction in 2014 guidance were better than we expected. However, we remain cautious on BYD's expectation for a 2H14 recovery in regional trends. We have made tweaks to our model but our 2014e EBITDA and YE14 price target are unchanged at $605m and $13.” Boyd Gaming Corporation closed on Wednesday at $11.82.