{"id":297908,"date":"2023-11-08T15:18:27","date_gmt":"2023-11-08T21:18:27","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=297908"},"modified":"2023-11-08T15:38:56","modified_gmt":"2023-11-08T21:38:56","slug":"red-rock-resorts-stock-draws-sell-side-praise-after-q3-update","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/","title":{"rendered":"Red Rock Resorts Stock Story Supported by Analysts Post-Q3 Earnings"},"content":{"rendered":"

On a mostly downbeat day for gaming equities, shares of Red Rock Resorts (NASDAQ: RRR) edged higher after the company delivered decent third-quarter results late Thursday.<\/p>\n

\"red
The Red Rock Casino Resort, pictured above. Analysts remain bullish on the name following third-quarter earnings. (Image: YouTube)<\/figcaption><\/figure>\n

The Station Casinos parent announced it earned 60 cents a share on revenue of $411.6 million during the July through September period. Analysts expected earnings of 39 cents on sales of $412.2 million. Despite the revenue and news that the opening of the Durango Casino and Resort has been pushed back<\/a> to December 5 from November 20, sell-side analysts remain mostly constructive on the stock.<\/p>\n

While there are concerns in the investment community regarding potential adverse effects on regional gaming equities attributable to macroeconomic headwinds<\/a>, some analysts argue that scenario is largely priced into shares of Red Rock, and that the operator could prove resilient thanks to ongoing strength in the Las Vegas locals segment.<\/p>\n

While there could be near-term hesitancy to buy RRR shares for a number of macro-related reasons, longer term we continue to believe spending\/visitation trends will remain relatively healthy across the LV Locals market while RRR\u2019s stable cost structure should ultimately allow for greater flow through,\u201d wrote Stifel analyst Steven Wieczynski in a note to clients.<\/p><\/blockquote>\n

He rates Red Rock a \u201chold\u201d and reduced his price target on the name to $47 from $51. The revised price forecast still implies upside of more than 10% from current levels.<\/p>\n

Red Rock Benefits Include Balance Sheet Strength<\/h2>\n

While many market participants think of Strip operators such as Caesars Entertainment and MGM Resorts International (NYSE: MGM) as the primary avenues for investing in Las Vegas, Red Rock offers a different approach that reduces the volatility associated with Strip assets.<\/p>\n

\n

As noted by Wieczynski, Red Rock\u2019s balance sheet is \u201cclean\u201d relative to its peers, and the operator is outpacing rivals when it comes to converting earnings before interest, taxes, depreciation, and amortization (EBITDA) into free cash flow — a trait the could be meaningful over the long term.<\/p>\n<\/div>\n

Likewise, there are Las Vegas-specific macro tailwinds that could drive long-term appreciation by Red Rock stock, including rapid population growth.<\/a> That\u2019s vital to a gaming operator with all of its venues in the Las Vegas Valley.<\/p>\n

\u201cWe view the economic tailwinds that drove outsized growth in the greater Las Vegas economy ahead of COVID-19 as structural in nature (favorable tax rate, growing retiree base, diversifying economy\/labor force) and thus expect them to stay healthy which should put RRR\u2019s EBITDA flow through in a much stronger position moving forward,\u201d added the Stifel analyst. \u201cUnemployment trends in Las Vegas continue to be favorable as well as population growth which are a positive for RRR.\u201d<\/p>\n

Durango Could Be 2024 Catalyst for Red Rock<\/h2>\n

As noted above, Red Rock pushed back the opening of Durango by a couple of weeks, but that doesn\u2019t damage the ability of the new venue to be a catalyst for Red Rock shares next year. In a note to clients, CBRE analyst John DeCree<\/a> reiterated a \u201cbuy\u201d rating on the stock while observing Durango could be a near-term growth driver.<\/p>\n

He added that as the new casino resort ramps up, it could bolster Red Rock\u2019s free cash flow and speed up the operator\u2019s deleveraging efforts.<\/strong><\/p>\n

Citing Red Rock\u2019s ownership of all the real estate on which its casinos reside, as well as hundreds of acres of unused land throughout Las Vegas, DeCree said the stock offers favorable volatility characteristics relative to peers.<\/p>\n","protected":false},"excerpt":{"rendered":"

On a mostly downbeat day for gaming equities, shares of Red Rock Resorts (NASDAQ: RRR) edged higher after the company delivered decent third-quarter results late Thursday. The Station Casinos parent announced it earned 60 cents a share on revenue of $411.6 million during the July through September period. Analysts expected earnings of 39 cents on […]<\/p>\n","protected":false},"author":46,"featured_media":248555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,81886],"tags":[81897,81903,23],"acf":[],"yoast_head":"\nRed Rock Resorts Stock Draws Sell-Side Praise After Q3 Update<\/title>\n<meta name=\"description\" content=\"Red Rock Resorts stock supported by analysts on Durango prospects, Las Vegas locals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Red Rock Resorts Stock Draws Sell-Side Praise After Q3 Update\" \/>\n<meta property=\"og:description\" content=\"Red Rock Resorts stock supported by analysts on Durango prospects, Las Vegas locals.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-08T21:18:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-08T21:38:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/\",\"url\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/\",\"name\":\"Red Rock Resorts Stock Draws Sell-Side Praise After Q3 Update\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg\",\"datePublished\":\"2023-11-08T21:18:27+00:00\",\"dateModified\":\"2023-11-08T21:38:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Red Rock Resorts stock supported by analysts on Durango prospects, Las Vegas locals.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Red Rock Casino-Resort. The operator is among the gaming companies increasing use of AI. (Image: YouTube)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Red Rock Resorts Stock Story Supported by Analysts Post-Q3 Earnings\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Red Rock Resorts Stock Draws Sell-Side Praise After Q3 Update","description":"Red Rock Resorts stock supported by analysts on Durango prospects, Las Vegas locals.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/","og_locale":"en_US","og_type":"article","og_title":"Red Rock Resorts Stock Draws Sell-Side Praise After Q3 Update","og_description":"Red Rock Resorts stock supported by analysts on Durango prospects, Las Vegas locals.","og_url":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-11-08T21:18:27+00:00","article_modified_time":"2023-11-08T21:38:56+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/","url":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/","name":"Red Rock Resorts Stock Draws Sell-Side Praise After Q3 Update","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg","datePublished":"2023-11-08T21:18:27+00:00","dateModified":"2023-11-08T21:38:56+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Red Rock Resorts stock supported by analysts on Durango prospects, Las Vegas locals.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/RRR.jpg","width":1280,"height":720,"caption":"Red Rock Casino-Resort. The operator is among the gaming companies increasing use of AI. (Image: YouTube)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/red-rock-resorts-stock-draws-sell-side-praise-after-q3-update\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Red Rock Resorts Stock Story Supported by Analysts Post-Q3 Earnings"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/297908"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=297908"}],"version-history":[{"count":4,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/297908\/revisions"}],"predecessor-version":[{"id":297914,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/297908\/revisions\/297914"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/248555"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=297908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=297908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=297908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}