Susquehanna downgraded Boyd Gaming (BYD) to Neutral from Positive with a price target of $86, up from $76, after the company sold its 5% ownership in FanDuel to Flutter and renegotiated its market access agreement. The firm estimates Boyd will use the $1.37B in proceeds to reduce its current $1.6B of bank debt where it pays 6.1% interest, saving $85M of annual cash interest expenses. After adjusting its model for the sale, Susquehanna views Boyd Gaming shares as fairly valued.
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Read More on BYD:
- JPMorgan views Boyd’s FanDuel stake sale as mixed
- Boyd Gaming price target raised to $87 from $76 at Stifel
- Boyd Gaming downgraded to Neutral from Positive at Susquehanna
- Mixed Impact of Boyd Gaming’s Stake Sale in FanDuel: Debt Reduction vs. Future Earnings Uncertainty
- Boyd Gaming to sell 5% FanDuel stake to Flutter for $1.755B cash consideration