Boyd Gaming Corporation

Deutsche Bank analyst Carlo Santarelli upgraded Boyd Gaming from Hold to Buy following the company's Q2 FY26 earnings per share result, which came in ahead of estimates and was supported by solid profitability metrics. The upgrade reflects confidence in Boyd Gaming's near-term earnings resilience, underpinned by its multi-jurisdictional casino footprint and growing online operations. Boyd Gaming's Q2 FY26 EPS beat and profitability metrics support the near-term catalyst of ongoing expansion in Las Vegas locals and online operations, with projects like Norfolk and Suncoast modernization expected to contribute more meaningfully to earnings and cash flow. The company's narrative projects $4.4 billion in revenue and $212.8 million in earnings by 2029, requiring 2.5% yearly revenue growth and an earnings decrease of about $1.6 billion from $1.8 billion today. Three fair value estimates from the Simply Wall St Community span roughly US$0.39 to about US$149.86 per share, while the narrative forecasts a $95.94 fair value, a 36% upside to the current price.

Boyd Gaming raised its full-year 2026 EBITDAR guidance for its Online segment by $5 million to a range of $35 million to $40 million, while also increasing its Managed business outlook by $3 million to $113 million to $117 million. The company reported second-quarter revenue growth of 3% and EBITDA growth of 2% when adjusting for the prior year's FanDuel transaction and tax pass-through amounts, with property operating margins holding at 40%. CEO Keith Smith noted that strong performances in the Midwest and South, online, and managed segments were partially offset by continued softness in the Las Vegas destination business, primarily at the Orleans, and ongoing construction disruption at the Suncoast. CFO Josh Hirsberg quantified the destination impact at around $5 million of EBITDAR, similar to the prior quarter, and said the Suncoast disruption was about $3 million for the second quarter, with a similar level expected in the third quarter. The company reiterated its plan to repurchase shares at a $150 million per quarter pace, having bought back $156 million, or 1.9 million shares, at an average price of $83.60 during the quarter, and expects to complete the sale of its Shreveport property by the end of July.

Boyd Gaming reported second-quarter revenue of $1.03 billion, flat year over year, and earnings per share of $1.93, up from $1.87 a year ago. Revenue edged past the Zacks Consensus Estimate by 0.58 percent, while EPS beat by 3.76 percent. Among its segments, Midwest and South revenue rose 3.1 percent to $556.89 million, Las Vegas Locals slipped 1.4 percent to $225.9 million, Downtown Las Vegas fell 5.7 percent to $52.11 million, and Managed & Other climbed 13.1 percent to $41.3 million. Adjusted EBITDAR for Midwest and South came in at $208.75 million, Las Vegas Locals at $106.42 million, Downtown Las Vegas at $16.91 million, Managed & Other at $30.69 million, Online at $10.59 million, and Corporate expense was a negative $22.88 million.

Boyd Gaming has a 16.91% upside to a fair value target of $102.07, according to 24/7 Wall St., which issued a Buy recommendation with a 90% confidence score ahead of the company's confirmed July 23 earnings release. The stock trades at a forward P/E of 11 despite generating $317.42 million in quarterly adjusted EBITDAR with property margins exceeding 39%. CEO Keith Smith has aggressively returned capital, with $155 million in first-quarter 2026 repurchases and a raised $0.20 quarterly dividend, while the board authorized an additional $500 million buyback, leaving roughly $707 million remaining. Over the past four and a half years, Boyd has returned $2.9 billion to shareholders and reduced the share count by more than 33%. The company's traditional leverage of 1.8x is the strongest in its history and dwarfs peers MGM Resorts and Penn Entertainment, while options positioning shows a 0.17 put/call ratio, flagging bullish sentiment into the report.

Eaton Corporation surged on accelerated demand for data centre power solutions, according to Janus Henderson Forty Fund's first-quarter 2026 investor letter. The fund highlighted Eaton as a notable performance contributor, citing investor excitement over its growing opportunity to supply data centers, which has driven strong order and backlog growth. Eaton's recent acquisition of Boyd Gaming has also strengthened its position in liquid-cooling technology, potentially opening another growth avenue tied to data centers. Eaton reported record revenue of $7.5 billion in Q1 2026 and $1.7 billion of segment operating profit. The stock closed at $407.71 per share on June 16, 2026, with a one-month return of 10% and a 52-week gain of 24.73%, giving it a market capitalization of $158.31 billion.