Bank Of America Upgrades Boyd Gaming

Following the company’s impressive Q2 earnings report, Bank of America has upgraded U.S. regional casino operator Boyd Gaming Corporation BYD 0.36% from Underperform to Neutral. In a new report, analyst Shaun Kelley explained why the firm now sees stability returning to Boyd’s business.

Fundamental Recovery

According to Kelley, Boyd’s 3.5 percent gross gaming revenue (GGR) growth in Q2, along with the company’s effective cost-cutting measures, was the driving force behind its Q2 EBITDA beat. Bank of America had predicted that Q2 would be a strong quarter for U.S. regional operators Boyd, Gaming and Leisure Properties Inc GLPI 0.6%,Pinnacle Entertainment, Inc PNK 0.49% and Penn National Gaming, Inc PENN 1.61%, and so far, the results have confirmed that prediction.

In addition to the company’s top-line growth, Kelley also pointed out Boyd’s 6.2x net debt/EBITDA ratio, financial leverage that can magnify equity returns.

Challenges

Despite the improving environment, Bank of America still sees…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!