Boyd Gaming (BYD) Stock Forecast & Price Target

Boyd Gaming Corp has demonstrated a positive trajectory in its Adjusted EBITDA margin, which improved by 52 basis points year-over-year and 167 basis points quarter-over-quarter in Q2, reflecting the effective implementation of strategic initiatives. The company has expanded its footprint by adding 53 new stores over the past year, and while revenue growth was flat year-over-year, the maturation of these stores is expected to enhance margins moving forward. Furthermore, as supply chain pressures ease, the availability of parts is anticipated to improve, potentially reducing operational costs and contributing positively to profitability.

Boyd Gaming Corp has experienced negative same-store sales (SSS) for consecutive quarters, with a reported decline of 2.1% in Q2, suggesting ongoing challenges in maintaining revenue growth. The company faces industry headwinds such as tough comparisons to pre-pandemic loss rates, consumer behavior deferring repairs to avoid higher insurance costs, and adverse weather conditions impacting operations. Additionally, a persistent tight labor supply within the collision repair industry further complicates operational efficiency and could tighten profit margins, contributing to a negative outlook for Boyd Gaming's stock.