Jefferies Downgrades Red Rock Resorts (RRR) to Hold

Jefferies analyst Cassandra Lee downgraded Red Rock Resorts (NASDAQ: RRR) from Buy to Hold with a price target of $51.00 (from $64.00).

The analyst comments: "Despite the strong performance from Durango since opening in Dec 2023, near-term disruptions/potential expansion plans at the property and other assets in the portfolio suggest leverage will remain elevated in the near-term (2025E and 2026E leverage ratio of 4.1x and 4.2x, respectively vs. 3.0x target). In 2025, we anticipate renovations at Green Valley Ranch, Sunset Station and Durango to negatively impact property EBITDA by $11.5M, $5.4M and $5.9M, respectively. Further, the potential for further expansion of Durango and beginning of new property developments are under consideration at present."

For an analyst ratings summary and ratings history on Red Rock Resorts click here. For more ratings news on Red Rock Resorts click here.

Shares of Red Rock Resorts closed at $44.72 yesterday.

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