Q: What will it take for BOYD Group to turn their business around and their price to go up to their historical levels.
5i Research Answer:
BYD has faced recent weakness on slowing same-store sales, labour headwinds, and increased upfront expenses from greenfeield and brownfield investments. Its valuation is still expensive given the companies historical trackrecord of execution and successfully integrating acquisitions, but is lower than its historical average. We think a reversal of the factors mentioned can push BYD back up to historical levels. We believe that these will reverse and analyst outlook calls for EPS to double next year, so we will be watching the upcoming earnings closely.