the Las Vegas locals thesis<\/a> now receives significant ballast from the region\u2019s influx of new residents from high-tax states, including California. Many of those new Sin City residents pay cash for real estate. Combine that with their savings on income tax — Nevada doesn\u2019t have one — and they have the resources to indulge in casino visits.<\/p>\n<\/div>\nFueled by ongoing migration from high-cost living states, Nevada\u2019s population is expected to swell in the years ahead, with much of that growth occurring in the Las Vegas Valley. As such, some analysts are bullish on Red Rock\u2019s long-term story.<\/p>\n
\u201cWhile there could be near-term hesitancy to buy RRR shares for several macro-related reasons, longer-term, we continue to believe spending\/visitation trends will remain relatively healthy across the Las Vegas locals market, while RRR\u2019s diminishing cost structure should ultimately allow for greater flow through,\u201d wrote Stifel analyst Steven Wieczynski in a note to clients.<\/p>\n
He rates Red Rock a \u201chold,\u201d with a $45 price target, down from $50.<\/p>\n
Speaking of Real Estate<\/h2>\n
Red Rock owns all of the land on which its casinos reside. Combine that with the aforementioned unused acres, and the operator has a deep real estate portfolio that investors may not be appropriately valuing.<\/p>\n
Their average land holding is worth ~$1.2M per acre, which, to us, is well below what investors are currently embedding in the current share price. We aren\u2019t saying all of their ~650 acres would get sold for that amount per acre, but there are clearly parcels of land out in their portfolio which aren\u2019t getting the full recognition from investors they probably should be,\u201d Wieczynski added.<\/p><\/blockquote>\n
The company\u2019s ability to fetch prime pricing for some of its property will be tested when it sells the associated real estate<\/a> after demolishing Fiesta Henderson, Fiesta Rancho, and Texas Station.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Red Rock Resorts (NASDAQ:RRR) are trading higher today after the casino operator delivered what analysts are calling strong second-quarter results. But the big story is the operator\u2019s plan to double its Las Vegas footprint by 2030. Red Rock is already one of the dominant operators geared toward Las Vegas locals. In addition to […]<\/p>\n","protected":false},"author":46,"featured_media":225836,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,81886],"tags":[81897,23],"acf":[],"yoast_head":"\n
Red Rock On Course To Double Las Vegas Presence By 2030<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n