Shares of Boyd Gaming (NYSE: BYD) surged on Friday following the casino operator’s impressive third-quarter results, which underscored significant growth potential in Las Vegas and Norfolk, Va. The company’s stock soared by 7.85%, reaching a new 52-week high as investors responded positively to Boyd’s ambitious expansion plans for Cadence Crossing Casino in suburban Las Vegas and a partnership with a Native American tribe to operate a new gaming venue in Norfolk. The report prompted Stifel analyst Steven Wieczynski to raise his price target on Boyd stock from $67 to $74.
Wieczynski noted that Boyd Gaming is beginning to distinguish itself from its peers, thanks to stable trends in its core Las Vegas locals market and promising long-term growth projects, including the Norfolk venture set to commence in stages starting next year. He emphasized that Boyd’s strong balance sheet compared to rivals might be a key factor in shifting sentiment about the stock for the better.
In the competitive Las Vegas market, Boyd faces challenges from Red Rock Resorts (NASDAQ: RRR) as both companies vie for local patronage. In response, Boyd is developing Cadence Crossing to replace the Jokers Wild Casino in Henderson, a property impacted by the COVID-19 pandemic. Originally intended to retain the Jokers Wild name, the new designation aims to reflect ties to a nearby master-planned community.
In Virginia, Boyd is partnering with the Pamunkey Indian Tribe, which secured voter approval to establish a gaming venue along the Elizabeth River. According to Wieczynski, this development presents an enticing opportunity for experienced gaming operators to enter an underserved, high-quality market without resorting to large-scale mergers and acquisitions. He highlighted that the $750 million project reduces the likelihood of Boyd seeking to purchase existing casino assets, a scenario analysts would prefer to avoid.
During the third quarter, Boyd’s downtown Las Vegas segment performed robustly, though properties like the Orleans and the Gold Coast faced competitive pressures from smaller, independent operators and potential business poaching by Red Rock’s Durango. Nonetheless, Boyd recently inaugurated a high-tech sportsbook at Suncoast, and Wieczynski sees potential for revitalizing overall activity at the casino hotel.
Looking ahead to 2025, Wieczynski is optimistic about Boyd’s prospects within the regional gaming landscape. He suggested that if Boyd can replicate the success seen at Fremont at Suncoast, the Las Vegas locals segment could not only stabilize but also exhibit growth despite aggressive promotional tactics from competitors.