Red Rock Resorts (RRR) PT Lowered to $74 at Mizuho

Mizuho analyst Ben Chaiken lowered the price target on Red Rock Resorts (NASDAQ: RRR) to $74.00 (from $77.00) while maintaining a Outperform rating.

The analyst comments "Overall, 1Q slightly softer than expected largely on margins, with management pointing to project disruption as well as 1x costs (that we interpreted as similar to MGM with higher insurance, etc., and other variable more 1x items) LV revenue (ex $4.7m North Fork Management) of $499.5m (our $498.0m/Street $502.7m), and Las Vegas EBITDA of $232.4m (our $236.6m/Street $236.4m). Segment EBITDA margins came in lower relative to estimates at 46.5% (vs our 47.5% and Street 47.0%), as highlighted, largely on disruption and variable 1x items Net/net shares will be lower, but we don't believe much has changed underlying. In our view the cost/margin commentary isn't great, but when we split apart the 1x vs what will impact future quarters, it feels slightly less dramatic."

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