AnalystConsensusTarget updated the narrative for RRR

Red Rock Resorts' analyst price target has increased by nearly $2 to approximately $65.85. Analysts cite strong project momentum, sustained revenue growth, and local market strength as key drivers for the upward revision.

Analyst Commentary

Recent Street research showcases a range of perspectives on Red Rock Resorts, reflecting both bullish optimism and noted areas of caution.

• Bullish analysts highlight robust momentum stemming from ongoing renovations at properties such as Sunset Station and Green Valley Ranch, as well as a substantial $385 million expansion of the Durango project.
• Several research updates raise price targets, some to as high as $69. They cite expectations that the company’s project pipeline could deliver hundreds of millions in incremental EBITDA over the next three years.
• Strength in the Las Vegas locals market is seen as a competitive edge, underpinned by sustained revenue growth even amid construction disruptions. Casino and food and beverage revenue continued to grow in the most recent quarter.
• Analysts view the recent selloff as potentially overdone. They suggest a compelling risk/reward scenario for patient investors as construction risks get absorbed and the business executes on its growth strategy.

• Some cautious analysts note that, despite positive trends in local markets, they would prefer to wait for further pullbacks before committing to the stock. This signals that valuation may be slightly ahead of itself following recent gains.
• Concerns remain about possible spillover effects from weakness on the Las Vegas Strip into the locals market, although recent reports suggest these fears may be overblown.
• The continued construction disruptions, particularly at Durango, are expected to remain a near-term headwind and impact consensus estimates through 2026. Execution risk remains as projects progress towards completion.

What's in the News

• Jefferies upgraded Red Rock Resorts to Buy from Hold, highlighting ongoing renovations at key properties and announcing a $385 million expansion of the Durango project. Jefferies expects that the project pipeline could generate several hundred million dollars in incremental EBITDA within the next three years. (Jefferies research note)
• Stifel raised its price target on Red Rock Resorts shares to $63 from $60. The firm indicated that concerns about Las Vegas Strip weakness affecting the locals market may be overstated, but suggested investors consider waiting for a pullback before entering. (Stifel research note)
• Red Rock Resorts declared a cash dividend of $0.26 per Class A common share for the fourth quarter of 2025, payable on December 31, 2025 to shareholders of record as of December 15, 2025. (Company announcement)
• The company increased its equity buyback authorization by $300 million to a total of $900 million and extended the buyback plan through December 31, 2027. (Company announcement)

Valuation Changes

• Fair Value Estimate has increased slightly from $64.08 to $65.85, reflecting a more optimistic outlook.
• Discount Rate has decreased marginally from 9.88% to 9.83%, indicating slightly lower perceived risk in the valuation model.
• Revenue Growth projections have risen from 2.91% to 3.33%, following recent analyst updates.
• Net Profit Margin is up from 11.56% to 12.14%, highlighting improving profitability expectations.
• Future P/E Ratio has edged down from 19.35x to 18.94x, which suggests slightly more attractive valuation multiples moving forward.