Red Rock Resorts (RRR) PT Lowered to $65 at Deutsche Bank
Deutsche Bank analyst Carlo Santarelli lowered the price target on Red Rock Resorts (NASDAQ: RRR) to $65.00 (from $70.00) while maintaining a Buy rating.
The analyst comments "Tonight, post close, RRR put forth an in-line print, with both our forecast and Consensus. Given the softer same-store Locals GGR in the 1Q24, the softness in the BYD report (LV locals property EBITDA -12.5%), our concerned incoming calls regarding RRR post the BYD print, and the move lower in RRR shares post the BYD print, we struggle to imagine buyside forecasts were meaningfully north of Consensus, though the after-market stock action, albeit on limited volume, would say otherwise. Nevertheless, in our view, the 1Q24 could be looked at as broadly uneventful, with the LV Locals adjusted EBITDA result, which was up 7% Y/Y, broken down as follows: 1) $8.4 mm of combined low sportsbook hold and construction disruption (+11% Y/Y, excluding these items), 2) Durango annualizing at a ~20% return on investment on a standalone basis, and 3) the same-store portfolio down ~9% Y/Y, or ~5% Y/Y, when adjusted for the aforementioned items."