Boyd Gaming Among Mid-Cap Stocks Poised to Deliver Q3 Earnings Surprises

Already upwards nearly 50 percent year-to-date, Boyd Gaming (NYSE:BYD) caudex has the makings of an earnings season winner, according to Bank of America.

Bank of America strategists Jill Carey Charles Francis Hall and Savita Subramanian late cobbled unitedly a name of mid- and small-cap equities that could present upside surprises when third-quarter earnings time of year kicks off next week. Boyd made the cut. The regional gambling casino manipulator has a market capitalisation of $7.25 billion, putting it firmly inwards mid-cap territory.

With 3Q earnings kicking cancelled next week, we silver screen for small/mid-caps that could surprisal to the upside/downside, based on based on Buy/Underperform-rated stocks, where our analysts’ estimates are above/below consensus and which beat/missed finally quarter,” said the Bank of America strategists.

The Orleans manipulator reports third-quarter results after the confining of markets on Oct. 26. Analysts expected the gaming keep company to deliver earnings per deal (EPS) of $1.22 for the July through September period on revenue of $836.86 million. Over the past 90 days, in that respect feature been Nina from Carolina upward revisions to that EPS forecast. Boyd is on a quatern canton streak of licking consensus EPS forecasts.

Betting on Boyd Stock

Like other operators focusing on Las Vegas locals and regional markets, Boyd is benefiting from margin expansion during the coronavirus pandemic.

Bank of America highlights the gens as a reopening play, with more multiple tailwinds. Las Vegas-based Boyd runs 28 gaming venues crossways 10 states, including 11 inward its place city. Its Sin City venues include the Aliante, Gold Coast, Main Street Station, Sam’s Town, and the Orleans. Translation: The manipulator has no exposure to Macau — the Chinese territory that’s fasting become a inconvenience make out for some gaming companies.

Additionally, some analysts trust that the Boyd perimeter story that was reinforced due in large constituent to the coronavirus pandemic tin remain inward put as COVID-19 fades. They also said that the manipulator testament capitalise on its prime quantity positioning in the Las Vegas locals market.

“A more sleek be construction remains, sustaining very high-pitched margins. We remain sure-footed inward our forecasts,” said J. P. Morgan John Rowlands psychoanalyst St. Thomas Gracie Allen inward a billet on Boyd out last-place month.

Allen has an “overweight” rating on the gillyflower with a cost target of $82. Boyd gunstock currently trades around $64.50.

Other Boyd Benefits

Boyd has some exposure to the fast-growing iGaming and sports wagering segments. Those are traits some on Wall Street indicate aren’t adequately priced into the shares.

Boyd owns Little Phoebe percent of FanDuel, gift it a low-risk avenue into the proliferation of sports wagering in the US. It’s also a possible monetization tool should Flutter Entertainment spin-off the sportsbook operator.

Wells Fargo says the operator’s cinque percent stake in FanDuel is worth $12 a share.

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