Update shared on29 Jul 2025
Fair value Increased 12%Analysts have raised Boyd Gaming’s price target to $88.85, citing balance sheet strengthening and increased earnings stability from the accretive FanDuel stake sale and revised market access agreements, though some caution on fair valuation and sector-wide macro risks.
Analyst Commentary
- Sale of Boyd’s 5% stake in FanDuel at a strong, highly accretive valuation provides a substantial cash influx, which is expected to be primarily used for debt reduction, resulting in significant annual interest expense savings and further strengthening the balance sheet.
- Revised and extended market access agreements with FanDuel/Flutter will now offer Boyd fixed-fee income per state through 2038, replacing previously variable structures, which introduces stability but removes potential variable upside.
- Bullish analysts see the FanDuel deal as a catalyst for a re-rating of U.S. gaming assets, boosting sector sentiment and implying positive read-through for online peers like DraftKings, while the transaction’s swift execution exceeded expectations.
- Bearish analysts caution that after accounting for the FanDuel stake sale and modeled debt reduction, Boyd’s stock appears fairly valued at current levels, prompting reductions to more neutral stances despite raised price targets.
- Macro risks—including consumer headwinds, tariff uncertainty, and regulatory/tax developments in digital gaming—are flagged as sector-wide challenges; Boyd’s stable core operations and regional focus are seen as relatively advantageous in this environment.
What's in the News
- Boyd Gaming significantly expanded its share repurchase program by authorizing an additional $500 million, bringing the total share buyback authorization to $2.8 billion (Key Developments, 2025-07-17).
- In Q2 2025, the company repurchased 1.47 million shares for $105 million, with total cumulative repurchases reaching 34.38% of shares outstanding since 2021 (Key Developments, 2025-07-24).
- Boyd Gaming was added to both the Russell 1000 Value-Defensive Index and the Russell 1000 Defensive Index, highlighting its perceived stability and value characteristics (Key Developments, 2025-06-28).
- Boyd Gaming signed a new three-year extension with International Game Technology (IGT) for sports betting technology, continuing to use IGT’s PlaySports platform and retail kiosks across its properties in Nevada and several other states (Key Developments, 2025-06-16).
- New Jersey proposed a tax increase of “less than 20%” on online sports betting and iGaming, potentially impacting Boyd Gaming’s online gaming business exposure in the state (NJ.com, 2025-06-24).
Valuation Changes
Summary of Valuation Changes for Boyd Gaming
- The Consensus Analyst Price Target has significantly risen from $80.62 to $88.85.
- The Consensus Revenue Growth forecasts for Boyd Gaming has significantly fallen from 1.4% per annum to -3.8% per annum.
- The Net Profit Margin for Boyd Gaming has significantly risen from 12.84% to 15.36%.
Disclaimer
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