executives consistently refuting<\/a> that the venue was up for sale. Obviously, there was a change of heart, as highlighted by today’s announcement.<\/p>\nWhile the $650 million sale price occurs below Palms’ book value, indicating San Manuel is getting a good deal, there is some potential upside for Red Rock investors in this deal.<\/p>\n
As Macquarie analyst Chad Beynon points out in a note to clients today, the operator has numerous options for proceeds from the Palms transaction. It could revisit the Durango project, something it touted prior to the Palms purchase in 2016, and the company could reduce debt, according to the analyst.<\/strong><\/p>\nBeynon adds Red Rock could be one of the first gaming companies to reinstate its dividend. Operators cut and suspended payouts at the height of the pandemic to conserve cash.<\/p>\n
He reiterates an \u201coutperform\u201d rating and a $36 price target on Red Rock stock.<\/p>\n","protected":false},"excerpt":{"rendered":"
Red Rock Resorts, Inc. (NASDAQ:RRR) said today its Station Casinos unit is selling the Palms Casino Resort in Las Vegas. The buyer for $650 million in cash is the San Manuel Band of Mission Indians, ending roughly a year of speculation regarding the fate of the currently shuttered venue. Rumors about the transaction involving San […]<\/p>\n","protected":false},"author":46,"featured_media":172601,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33810,18456],"tags":[],"acf":[],"yoast_head":"\n
Red Rock Resorts Selling Palms to San Manuel for $650 Million<\/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