Red Rock Resorts an Alluring Growth Story, Says Analyst
Red Rock Resorts (NASDAQ:RRR) possesses multiple favourable fundamental frequency drivers that could micturate it single of the to a greater extent attractive long-term opportunities among casino equities.
That’s the sentiment of Jefferies analyst Cassandra Bruce Lee who initiated reportage of the gaming companionship today with a “buy” rating and a 12-month damage butt of $50, implying upside of well-nigh 31% from stream levels.
Although time risk and macro uncertainties persist, the company’s equipoise weather sheet has for the most part been derisked, allowing it to develop ace tread at a clip spell simultaneously reverting capital to shareholders,” wrote Gypsy Rose Lee inwards a take down to clients.
The operator is one of the to a greater extent telling shareholder rewards stories inwards the industries. Late utmost year, Red River John Rock proclaimed a $3 per portion special dividend and repurchased to a greater extent than $350 zillion worth of its possess shares via a Dutch people auction. Its quarterly payout of 25 cents apportion and dividend give in of 2.68% are among the highest inwards the gaming industry.
Red John Rock Treasure Trove of Real Estate Assets
In improver to its namesake venue inwards Summerlin and Green River Valley Ranch inwards Henderson, Red River Rock operates multiple gaming properties under the Station brand throughout the Las Vegas area. The fellowship also runs 10 Wildfire casinos, including heptad in Henderson, according to its website.
One of the primary reasons some analysts are enthusiastic around Red River Rock is the company’s vast tangible landed estate holdings end-to-end the Las Vegas Valley and Reno. Those include several C acres of undeveloped land. Given the terms points at which Las Vegas existent landed estate scene for casino-resorts trade in and Red Rock’s securities industry capitalization of $3.95 billion, it’s not a stint to say the investment community isn’t fully appreciating the operator’s prop assets.
“Red Rock presents a compelling development story, inward our view, with valuable existent acres assets strategically located across a prospering surface area of Las Vegas,” added Lee.
She said its attribute portfolio positions Red John Rock to potentially three-fold the figure of large integrated resorts it runs past 2030 patch impulsive earnings before interest, taxes, depreciation and amortisation (EBITDA) higher past 70%.
Last week, the companionship announced its closing the Wild Wild Mae West Gambling Charles Francis Hall & Hotel and that it testament likely reformulate that locale into a higher-end casino-hotel. The companionship owns 100 acres around that venue. In July, the operator announced the purchase of 126 acres of earth S of the Strip for $172 billion — boosting its unused put down holdings inward the Las Vegas Valley to nearly 430 acres. The troupe often acquires tangible acres years or decades before commencing new projects.
Bullish on Golden Entertainment, Too
Lee is also constructive on Golden Entertainment (NASDAQ: GDEN). The psychoanalyst started reportage of that inventory with a “buy” rating and a $64 toll forecast, implying upside of 68% from current levels.
The analyst cited Golden’s “balance tack strength and warm fundamentals” as catalysts for the shares.
She added the company’s of late announced $260 1000000 sale of the Rocky Gap Casino Resort inward Flinstone, Md. could speed up the company’s maturation story and its plans to homecoming capital to shareholders.