Boyd Gaming downgraded to Hold from Buy at Argus

Argus downgraded Boyd Gaming to Hold from Buy after its Q1 earnings miss. 2024 earnings should “rise modestly” due to solid revenue growth and the company’s share buyback program, but the company’s Las Vegas Locals segment will likely be pressured by the opening of a competitor’s location, the analyst tells investors in a research note. Boyd’s operating margin should increase as a result of favorable operating leverage at the Las Vegas properties and some of the regional casinos over the long term, but the firm is cutting its 2024 EPS view to $6.20 from $6.50 and also reducing its 2025 estimate to $6.50 from $6.70, Argus added.