New Morningstar Analyst Report for Boyd Gaming Corporation

Boyd Gaming BYD is an operator of regional casinos, with casinos in downtown Las Vegas and outlying parts of Las Vegas, Atlantic City, and other regional casinos in the South and Midwest. Boyd's casinos focus primarily on serving middle income consumers, with relatively low room rates used to draw in customers. Boyd has lagged other regional casino operators in sales growth, EBITDA margins, and ROICs in recent years. Boyd faces intensifying competition, particularly in the Atlantic City market. Boyd generates approximately a third of sales from the Las Vegas locals and downtown markets, which have been hit hard by a local housing market crash and high local unemployment. Boyd's uncertainty rating is very high, due to intensifying competition and the cyclical nature of the regional casino industry. We view Boyd as slightly overvalued and think the market has already priced in a recovery in the regional casino industry.