Boyd Gaming’s buy rating boosts interest in online casinos as Jefferies Equity Research expresses optimism post-meeting with senior management in Las Vegas. Analyst David Katz highlighted stable operating trends in the Midwest, South, and Las Vegas as positive indicators for the gaming giant. For related insights, discover how online slots are gaining popularity among U.S. players.
Stable Performance and Strategic Focus on Online Casinos
Katz observed that first-quarter results were influenced by factors like the Super Bowl and leap year. Red Rock Resorts’ opening of Durango Casino & Resort intensified competition, yet Katz believes Boyd’s estimates for the second quarter remain on track. Management prioritizes disciplined growth in mergers, acquisitions, and digital gaming, particularly as online casino legislation advances in key states.
Exploring Opportunities in Online Casinos
The company displays steady capital discipline, focusing on projects in Virginia and California, while anticipating long-term growth through digital gaming as iGaming legislation evolves. Boyd is balancing internal developments with strategic earnings growth.
Management also emphasized the importance of their FanDuel partnership, enhancing Boyd’s position in the burgeoning online casino market. With options available in their contract set to expire in 2028, the deal’s value remains a significant asset, as noted in a trustworthy source on U.S. gaming.
Despite challenges across the casino sector, Katz believes Boyd Gaming stands out. The group is poised to capitalize on potential growth amidst limited peer execution and capital decisions. Jefferies sets a price target of $84, while Boyd’s stock closed at $73.70.
