Editor's Note: Our Gaming Lodging & Leisure analysts added Boyd Gaming (BYD) to their Best Ideas list on 9/25/2015. Since then the stock has gained 17%. Here is a brief recap of a note they released earlier today.
In Q3, BYD delivered on the tenets of the long thesis we laid out in our 9/25 conference call/presentation - growth in Las Vegas and AC, stabilizing regional gaming trends, and operational improvements combined to produce a big beat and higher Q4 guidance.
More good news: it looks sustainable.
We remain positive on BYD as earnings visibility continues to improve and the locals Las Vegas market (remains well below peak) and Borgata could provide upside. Moreover, while BYD is making progress operationally, there is still significant room for higher productivity and margins across the portfolio.
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