Nomura sees 'attractive upside' in Boyd and Penn National as casinos reopen - InvestingChannel

Nomura sees ‘attractive upside’ in Boyd and Penn National as casinos reopen

Nomura Instinet analyst Harry Curtis sees “attractive upside” in shares of both Boyd Gaming (BYD) and Penn National Gaming (PENN) upon the reopening of casinos. Boyd and Penn should be able to restart operations gradually in May, with EBITDA recovering to 50% of 2019 peak in 2021 and to 80% in 2022, Curtis told investors earlier in a research note. With these assumptions, the analyst sees upside to $22 in Boyd shares, or 42% in the next 12-18 months, and to $19 for Penn, or 35%. Curtis believes Boyd Gaming should outperform Penn National “slightly given its stronger balance sheet.” Boyd could recover to $22 using 2022 EBITDA estimates versus Penn’s upside to $19, according to Curtis, who admits Penn’s unit growth profile is slightly better. However, as regional casinos reopen, the analyst believes both stocks should outperform. He keeps Buy ratings on both names while lowering Boyd’s price target to $22 from $39 and Penn’s price target to $16 from $39.