RRR - Red Rock Resorts attracts buy rating from Jefferies on growth potential

Jefferies initiated a Buy rating on Red Rock Resorts ( NASDAQ: RRR ) on what it sees as a compelling growth story opportunity for investors.

Red Rock Resorts ( RRR ) is noted to have valuable real estate assets strategically located across a booming area of Las Vegas. RRR's roughly 634 acres of undeveloped land across Las Vegas Valley and Reno gives the casino operator the capacity to double the number of large casino resorts by 2030.

Analyst Cassandra Lee and team think that at the current rate of investment, RRR's EBITDA grow rate could be 70% over the next decade.

"Although time risk and macro uncertainties persist, the company's balance sheet has largely been derisked, allowing it to grow one step at a time while simultaneously returning capital to shareholders."

Jefferies assigned a price target of $50 to RRR off a 10X multiple on the 2024 EBITDA estimate.

Sector watch: Las Vegas casino stocks are called good bets to ride out economic downturn.

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