Boyd Looks at Reducing Cost, Scope of Eschelon

LAS VEGAS-Boyd Gaming is evaluating changes that would either reduce the cost or reduce the scope of Eschelon Place development, its $4-billion replacement for the Stardust Casino on the Las Vegas Strip, according to JP Morgan gaming analyst Harry Curtis. Boyd did not return a phone call seeking comment.

“Depending on the magnitude, a reduction in cost/scope would be positive for the shares because it would reduce concerns about returns…[and] improve negative sentiment/supply concerns for Las Vegas as a whole since Echelon accounts for a significant portion of the capacity entering the market by 2010,” states Curtis in a memo issued Monday afternoon.

Boyd is not exploring an outright cancellation as some have suggested, Curtis says. “[Boyd] can continue to refine and evaluate the project until groundbreaking scheduled for [the second quarter of 2007], and so until then, we think the possibility of cancellation is remote,” he says.