Mizuho Securities has raised its price target for Boyd Gaming Corporation to $101 per share, pointing to the stock's current valuation as an attractive entry point for investors. The Japanese bank's analysts maintained their 'buy' rating on the Las Vegas-based regional casino operator, according to a note published today.
The revised target comes as Boyd Gaming shares have traded in a range that analysts consider undervalued relative to its earnings potential and asset base. The company, which owns and operates gaming properties in Nevada, Illinois, Indiana, and other US states, has benefited from steady demand in its regional markets and a disciplined approach to costs.
While Boyd Gaming is a US-focused business, its performance is watched by some UK fund managers with exposure to the global gaming and leisure sector. The stock has gained roughly 8% year-to-date, outperforming several larger US casino rivals. Mizuho's analysts noted that the company's free cash flow generation and share buyback programme provide a buffer against any regional economic slowdown.
For UK investors, the direct impact is limited as Boyd Gaming is not listed on the London Stock Exchange. However, the upgrade reflects a broader confidence in the regional casino segment, which could influence sentiment towards UK-listed gaming operators such as Entain or Flutter Entertainment, both of which have significant US operations. The FTSE 100-listed gambling sector has faced regulatory headwinds in the UK and Australia, but US regional gaming has proved more resilient.
Analysts at Mizuho emphasised that the price target increase is not driven by a change in Boyd's near-term earnings outlook but rather by valuation metrics. They pointed to a price-to-earnings ratio that sits below historical averages, making the stock relatively cheap compared with peers. The note did not specify a timeline for the target to be reached.