Red Rock Resorts (RRR) stock is soaring 8.87% in intraday trading on Wednesday, following the release of impressive second-quarter earnings and a wave of analyst price target increases. The casino operator's strong performance and positive outlook have sparked renewed investor interest.
The company reported Q2 revenue of $526.3 million, surpassing analyst expectations by 7.8%. Earnings per share came in at $0.95, significantly beating the consensus estimate of $0.41. The robust results were driven by strong Las Vegas operations and a one-time Native American management fee. Red Rock's net income grew by 55.1% year-over-year to $108.3 million, reflecting improved margins and overall profitability.
Following the earnings release, several major financial institutions raised their price targets for Red Rock Resorts. Truist Securities increased its target to $68 from $67, Barclays to $65 from $62, Deutsche Bank to $65 from $64, and Mizuho to $62 from $59. Additionally, Citizens JMP analyst Jordan Bender set a notably higher target of $64, up from $57, while maintaining an Outperform rating on the stock. These widespread upgrades signal growing confidence in Red Rock's future performance among Wall Street analysts, contributing to the significant rally in the company's shares.
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