RRR - Red Rocks Resorts stock loses bull rating at Truist on valuation call

Truist Securities turned cautious on the setup for Red Rock Resorts ( NASDAQ: RRR ) on Wednesday with a downgrade to a Hold rating from Buy.

Analyst Barry Jonas and team view Red Rock Resorts ( RRR ) as a strong operator in the most stable regulatory market, but also noted that it sees better relative value elsewhere with RRR the most expensive name it covers in the sector.

The Durango property is not expected to be a factor until late in the year at the earliest and is considered an overhang as investors debate the project’s near-term return on investment amidst rising company leverage, a variable- heavy debt stack and lack of diversification amongst an uncertain macro environment.

RRR's lack of diversification is also called out with 100% of revenues tied to the Las Vegas Locals market.

Truist lowered its price target on Red Rock Resorts ( RRR ) to $45. Shares of RRR traded flat on Wednesday at $43.22 at 11:55 a.m.

Red Rocks Resorts ( RRR ) is lined up to report earnings on February 7. See the consensus estimates and recent track record of earnings beats and misses.

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