Bank Of America Initiates Coverage On Red Rock Resorts With A Buy Rating
Shaun C. Kelley of Bank of America has initiated coverage on Red Rock Resorts Inc (NASDAQ: RRR) at Buy, and set a price target of $24. Red Rock is a leading casino operator, with 19 casino properties under its belt. It is also the manager of two Native American casinos. The company is a "near pure play investment on the Las Vegas Locals market" Kelley stated. The local market is rebounding with a positive macro environment potential and nearly no supply growth other than Red Rock.
"The company's revenue and EBITDA are still 22 percent and 30 percent below last cycle's peak offering recovery potential," Kelley said. New growth is possible with the company's acquisition of Palms. Red Rock also has land holdings can also be capitalized for new developments. And a tribal management agreement in North Folk could increase $1–1.50 per share.
Potential for growth beyond last year's number is plausible, as Red Rock continues to consolidate its position in a positive local market, according to the analyst.
At time of writing, Red Rock Resorts was up 0.62 percent at $19.44.
Latest Ratings for RRR
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Deutsche Bank | Maintains | Buy | |
| Jan 2022 | Macquarie | Downgrades | Outperform | Neutral |
| Jan 2022 | B of A Securities | Downgrades | Neutral | Underperform |
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