drive-in markets is declining<\/a>.<\/span><\/p>\n<\/div>\nAs Wieczynski notes, although Red Rock doesn’t operate Strip venues, the company is levered to the strength of that area.<\/span><\/p>\n\u201cFrom a direct perspective, we are keenly focused on the company\u2019s hybrid properties, led by the Palms. We view the success of these properties as directly tied to the economic vibrancy along the Strip, which, in our view, raises the probability of a protracted recovery,\u201d he said.\u00a0<\/span><\/p>\nHe adds that one of the company’s core demographics is Strip staffers that frequent Station venues after their shifts. Until the fiscal health of that group improves, it will be difficult for Red Rock to make a full recovery<\/strong>.<\/span><\/p>\nProblemed Palms<\/span><\/h2>\nRed Rock management said Tuesday the fate of the Palms and the other still-closed casinos will largely be determined by demand trends at the company’s properties that are currently open. There was no mention of the Palms being sold, a rumor that popped earlier this year, but was subsequently put to rest by management.<\/span><\/p>\nWieczynski says it’s anyone’s guess how the investment community will react if the Palms isn’t reopened, or if it’s sold.<\/span><\/strong><\/p>\n“We wonder how investors will react if The Palms isn\u2019t reopened or even eventually sold? <\/span>Would they applaud management for cutting ties, or put them in the penalty box because it was a bad use of capital?\u201d\u00a0<\/span><\/p>\nHe has a $14 price target on Red Rock stock, implying 16.6 percent upside from current levels. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Red Rock Resorts (NASDAQ:RRR) are slumping today after the gaming operator revealed a murky outlook for four of its still closed Southern Nevada properties. But one analyst sees opportunity with the stock should management opt to return the company to its core competencies. Following a better-than-expected second-quarter earnings report delivered yesterday after the […]<\/p>\n","protected":false},"author":46,"featured_media":143847,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
Red Rock Vegas Challenges Require Investors Patience, Says Analyst<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n