Boyd Gaming (BYD) Stock Forecast & Price Target

Boyd Gaming Corporation's recent operational performance reflects a positive trajectory, as evidenced by a notable improvement in its Q2 Adjusted EBITDA margin, which increased by 52 basis points year-over-year and 167 basis points quarter-over-quarter. The company's addition of 53 stores over the past year is anticipated to bolster revenue generation as these locations mature, positively impacting margins despite initially contributing negatively during their first year of operation. Furthermore, the easing of supply chain pressures is expected to enhance parts availability, potentially mitigating costs and further supporting the company's financial stability and growth outlook.

Boyd Gaming is encountering significant challenges, evidenced by a negative same-store sales (SSS) growth of -2.1% in Q2, reflecting difficulties against tough year-over-year comparisons as loss rates revert to pre-pandemic levels. Additionally, consumers are increasingly postponing repairs to avoid rising insurance costs, which further exacerbates the company's revenue pressures. The tight labor supply in the collision repair sector poses a long-term obstacle, compounded by an insufficient influx of new technicians, leaving Boyd Gaming's operations more vulnerable to systemic industry issues.