Morgan Stanley hikes its price target on Boyd Gaming (NYSE:BYD) to $31 from $27 after factoring in the casino operator’s acquisition of four new Ameristar properties from Pinnacle Entertainment. The PT from MS implies Boyd will track lower in the short term.
Susquehanna is more optmistic, assigning a price target of $40 to account for the value accretion from the Ameristar deal. “The four assets have no overlap with BYD’s existing portfolio, and will help drive incremental visitation to its Las Vegas casinos and broaden the company’s best practices. We expect the transaction to be 17% accretive to BYD’s 2018 FCF,” observes analyst Rachael Rothman.
Shares of Boyd Gaming jumped 7.55% yesterday and hit a 52-week high of $35.12 at one point during the day.