RRR Stock Forecast & Price Target

Red Rock Resorts Inc. reported strong growth metrics in its recent financial results, with Las Vegas revenues and EBITDA increasing by 6% and 7% year-over-year in 2Q25 and further continuing with 1% and 3% growth in 3Q25, respectively, while achieving notable margin expansions. The company is also experiencing robust member engagement, evidenced by a 10% year-over-year increase in new member sign-ups and accelerated growth in group bookings, which rose approximately 25% year-over-year heading into FY26. Additionally, the commitment to returning capital to shareholders is highlighted by an increased quarterly dividend, signaling strong operational performance and financial health amidst ongoing development projects.

Red Rock Resorts Inc. is facing a negative outlook primarily due to an anticipated sequential EBITDA contraction of approximately 10% from the second to the third quarter of 2025, compounded by expected ongoing EBITDA headwinds of nearly $10 million from construction disruptions at two of its properties. While leverage has decreased to 3.89x, concerns remain about the potential impact of the Las Vegas Strip's identified weaknesses on the broader local market, although there is no current evidence suggesting an immediate slowdown in this segment. Additionally, despite the company resuming share repurchase activities, the market's vulnerability raises red flags about long-term growth prospects and financial stability.