SunTrust Reiterates Buy Rating on Red Rock Resorts (RRR) Following 1Q

SunTrust analyst Neal Dingmann reiterated a Buy rating and $14.00 price target on Red Rock Resorts (NASDAQ: RRR) following the company's 1Q report. RRR reported a Q1 EBITDA miss. Cited run-rate cost cuts were more pronounced than what had been modeled, with an implied >36 month zero revenue liquidity profile well-above peer average.

In order to reduce cash outflow, management has implemented meaningful cost-cutting measures, with cited burn-rates well below our prior estimates. Management noted an all-in burn rate of ~$24M/month under full casino closures. Once casinos are reopened, management estimated they could hit EBITDA breakeven at ~35-45% of overall 2019 net revenues.

For an analyst ratings summary and ratings history on Red Rock Resorts click here. For more ratings news on Red Rock Resorts click here.

Shares of Red Rock Resorts closed at $10.90 yesterday.

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