Mizuho Upgrades Red Rock Resorts (NASDAQ:RRR) Stock to Outperform, Keeps PT

On June 2, Mizuho analysts upgraded Red Rock Resorts, Inc. (NASDAQ:RRR)’s stock to “Outperform” from “Neutral” with an unchanged price objective of $50, as reported by The Fly.

Mizuho Upgrades Red Rock Resorts (NASDAQ:RRR) Stock

The rating upgrade is backed by several factors. As per the analysts, the construction disruption impacting Red Rock Resorts, Inc. (NASDAQ:RRR) is now well understood and reflected in estimates. Amidst the challenges arising from the ongoing projects, the potential return on investment from construction might not be fully anticipated.

Another factor backing the rating upgrade revolves around the potential benefit from legislative changes, primarily the “Big Beautiful Bill.” This eliminates taxes on tips and overtime. Such changes are projected to favor Red Rock Resorts, Inc. (NASDAQ:RRR)’s target market, mainly in Las Vegas.

Furthermore, the firm opines that the earnings acceleration from the North Fork management agreement might not be fully included in present estimates. Therefore, the potential for increased earnings is also a critical reason for the favourable outlook on Red Rock Resorts, Inc. (NASDAQ:RRR).

Notably, net revenues from Las Vegas operations came in at $495.0 million for Q1 2025, reflecting a rise of 1.9% from $485.6 million in the same period of 2024.

Red Rock Resorts, Inc. (NASDAQ:RRR) is engaged in developing and managing casino and entertainment properties.

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Disclosure: None.