RRR Stock Forecast & Price Target

Red Rock Resorts Inc. has demonstrated strong financial performance, with 2Q25 Las Vegas revenues and EBITDA rising by 6% and 7% year-over-year, respectively, coupled with an increase in operating margins by approximately 50 basis points, reflecting broad-based strength in both rated and unrated customer segments. The company continues to see significant growth in group bookings, with an impressive 25% year-over-year increase anticipated in 4Q25, showcasing robust demand in the hospitality and entertainment verticals. Additionally, Red Rock Resorts has shown its commitment to returning capital to shareholders by increasing its quarterly dividend, even amidst ongoing investments in organic development, including the expansion of the Durango property.

Red Rock Resorts is facing projected EBITDA contraction of approximately 10% from Q2 to Q3 2025, attributable to ongoing construction disruptions at key properties, which are expected to impose nearly $10 million in EBITDA headwinds. Additionally, despite the recent decline in leverage to 3.89x, concerns remain regarding potential fallout from observed weaknesses in the Las Vegas Strip that could indirectly affect local market performance. Furthermore, the company has resumed share repurchase activities, yet the fears surrounding local market stability continue to loom, casting doubt on future revenue growth and overall financial health.