Published on: June 3, 2026, 10:36h.
Updated on: June 3, 2026, 10:36h.
- Boyd Gaming poised to acquire casinos potentially sold by Caesars
- Analysts note Boyd has significant “dry powder” available
- Management demonstrates “discipline” with a growth pipeline that remains “underappreciated”
Boyd Gaming (NYSE: BYD) may be in an advantageous position to acquire available assets stemming from Tilman Fertitta’s proposed $17.6 billion acquisition of Caesars Entertainment (NASDAQ: CZR).
In launching coverage of the stock, Texas Capital analyst David Bain indicated that Boyd is among the few operators “with the capability and history to be especially opportunistic to benefit shareholders in these potential post-deal asset sales by Caesars.”
“Acquisitions made in 2018 were conducted well below the market averages and recent operations M&A. Boyd’s traditional net leverage stands at approximately 1.8x (2.4x lease-adjusted), revealing billions in available dry powder as Caesars might divest strong assets in conjunction with its larger merger transaction,” the analyst notes.
He provided a “buy” rating for Boyd Gaming, setting a price target of $106, projecting a 24.7% increase from the closing price on June 2.
Boyd Likely to Proceed Cautiously
Fertitta unveiled the $17.6 billion proposal to make Caesars private last week, and it’s estimated that the transaction may take nearly a year to complete, suggesting no immediate asset sales will be disclosed. Nonetheless, it’s largely assumed that due to the geographic overlap between Caesars and Fertitta’s Golden Nugget, the combined entity will eventually reduce its portfolio, either voluntarily or as mandated by state regulators.
There are eight states and six distinct markets where both Caesars and Golden Nugget operate casinos, including locations like Atlantic City, NJ, Biloxi, MS, Lake Charles, LA, and Lake Tahoe, Las Vegas, and Laughlin in Nevada. While Bain did not specify which Caesars venues Boyd might be interested in, it’s noteworthy that all of the operator’s Nevada locations are in Las Vegas and cater to local customers. Boyd also has regional casinos in Louisiana and Mississippi.
While Boyd has yet to express interest in acquiring any Caesars or Golden Nugget casinos, there is some insight into the operator’s M&A strategy. The company currently holds $372.7 million in cash, enabling potential acquisitions, although it is probable they will avoid regional casinos where the existing operators do not own the property. Still, the current market environment presents a favorable opportunity for Boyd to grow its portfolio.
“We believe the strong track record of management at Boyd in delivering consistent results, significant investment returns, and disciplined M&A practices is pivotal in this current equity landscape and casino sector dynamics,” Bain adds.
Boyd’s Story Extends Beyond M&A
While mergers and acquisitions are drawing considerable attention in the casino industry, Bain emphasizes that there is much more to the Boyd narrative. Numerous renovations at several of Boyd’s regional venues are now finalized, and the recently opened Cadence Crossing Casino in Henderson, Nevada, highlights this progression. However, Wall Street’s projections for Boyd in 2027 appear to overlook contributions from these newly enhanced properties, according to Bain.
The analyst suggests that forecasts for 2028 may be “even less optimistic.” Boyd is in the midst of a $150 million share buyback program each quarter, aimed at reducing its outstanding shares by 16% by the end of the year. When you consider all these factors, a strong case for the stock’s value emerges.
“Boyd trades at 7.2x/6.7x traditional enterprise value/earnings before interest, taxes, depreciation, and amortization (EV/EBITDA), which is significantly lower than its peers, its approximate 10x pre-COVID average, and our estimated valuation of around 8.5x for fully owned regional assets (even higher for Las Vegas locals operations). Given BYD’s attributes and the aforementioned catalysts, we perceive the shares to be undervalued,” Bain concludes.