Red Rock Resorts rises after Mizuho upgrades to 'outperform', hikes PT

Shares of casino company Red Rock Resorts RRR.O rise 1.2% to $49 in premarket

Mizuho upgrades stock to "outperform" from "neutral"

Raises price target to $59 from $50; new PT at a premium of 22.7% to stock's last close

Says it believes RRR could be a beneficiary of the proposed tax bill that eliminates taxes on tips and overtime

Adds that no tax on overtime will benefit union workers, and unions are likely to negotiate for strong overtime hours

Brokerage says when it downgraded co in Q4 2024, it felt street estimates did not reflect the underlying risk in the local markets and impact from construction in 2025; now this headwind is reflected in estimates

Six of twelve brokerages rate the stock "buy", six "hold"; their median PT is $53 - data compiled by LSEG

As of last close, stock had risen 6.2% YTD