A focus on serving the locals market at a time when Las Vegas locals are enjoy low unemployment, earn more, and have more affordable housing, means investment prospects are good for Boyd Gaming.
Boyd Gaming owns 13 casinos in seven states, including the Borgata in Atlantic City, and relied on its income from casinos in the South and Midwest to keep the company afloat during the Great Recession.
Las Vegas was among the hardest-hit communities during the Great Recession, with unemployment exceeding 12 percent during the height of the financial crisis, and Boyd Gaming had to abandon its $4 billion Echelon casino and resort project on the north end of the Las Vegas Strip to keep from going under.
Fortunately, the local economy has turned around in Las Vegas, as more visitors come and the city’s hotels enjoy occupancy rates exceeding 90 percent each day. More than 42 million people visited Las Vegas in 2015, setting a tourism record, and a similar amount is expected against this year.
Many formerly stalled projects, including Boyd Gaming’s abandoned Echelon project, are renewed under new owners, the Las Vegas Convention Center is undergoing a $2.3 billion expansion through 2020, and Faraday Future is spending $1 billion to open a brand new factory that will build electric cars in North Las Vegas.
That means locals should continue to enjoy relatively low unemployment, better wages, and keep coming to Boyd Gaming’s locals-focused casinos, and gaming analysts say that should improve the company’s profitability.
With Las Vegas on the rebound, Boyd Gaming no longer is dependent upon the South and Midwest to keep it afloat, and its share price should top $20 this year, several gaming analysts suggested. Boyd Gaming shares recently closed at just over $18 a share.
