On Friday, Boyd Gaming Corporation (NYSE:BYD (SZ:002594)) saw its price target lowered by Mizuho, now set at $78.00, a decrease from the previous $80.00. Despite this adjustment, the firm maintains a Buy rating on the company's shares.
The revision followed Boyd Gaming's release of its first-quarter 2024 earnings, which did not meet the expectations set by the market and the firm's own estimates, particularly in the Las Vegas Locals, Downtown, and Midwest & South segments.
The company's adjusted EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent or Restructuring costs) for the first quarter fell short of both street and Mizuho's forecasts. This performance dip was noted across several key business areas, including the Las Vegas locals market, the downtown region, and the Midwest & South operations.
Despite the lower-than-anticipated results, Mizuho's stance on Boyd Gaming remains positive. The firm's analyst underscored the potential for easing trends in the Midwest & South segment, which could indicate an upcoming positive shift. Additionally, the expectations for the company's local and downtown markets have been reset, which could align more closely with future performance.
Boyd Gaming's current valuation was also highlighted as a compelling factor for maintaining the Buy rating. The company's stock value, in light of the recent earnings report and revised expectations, presents what Mizuho perceives as an attractive opportunity for investors.
In summary, while Boyd Gaming's recent financial outcomes have prompted a slight adjustment in the company's price target, the overall outlook from Mizuho suggests confidence in the company's potential for recovery and growth. The firm's maintained Buy rating reflects a belief in the company's value proposition and future prospects.
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