RRR - Red Rock Resorts tipped by JPMorgan for earnings topper
JPMorgan anticipates Red Rock Resorts (NASDAQ:RRR) will top Q1 earnings estimates based on Chase credit card data reported for January through March in Nevada, which is where the casino company generates 100% of its revenue and EBITDA. The firm holds an Overweight report on RRR given its favorable position in a healthy Las Vegas Locals market, a market which is said to be characterized by attractive demand with population growth from high-tax states like California and supply dynamics, with a rational promotional environment controlled by a finite number of operators. "We see this attractive same-store growth further complemented by RRR’s Durango development (opens in 2024), one that should achieve a reasonable ROIC, given this sub-market’s higher income residential demographic with modest nearby, competitive supply. Given RRR’s EBITDA/free cash flow generation, we model net leverage at year-end 2023 to be a solid 3.5X." The firm assigned a price target of $61
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Red Rock Resorts tipped by JPMorgan for earnings topper