Red Rock Stock Pullback May Be Buying Opportunity, Says Analyst
Posted on: November 3, 2025, 12:05h.
Last updated on: November 3, 2025, 12:38h.
- Stock endured a brutal October
- Pullback makes it more attractive on valuation
- Red Rock is one of the top growth stories among casino stocks, says analyst
Red Rock Resorts (NASDAQ: RRR) stock endured a dismal October, retreating more than 10% — a decline that included a 7.12% drop last week — but at least one analyst believes the pullback is providing long-term investors with an attractive entry point.
In a new report to clients, Stifel analyst Steven Wieczynski upgraded the stock to “buy” from “hold” with a $68 price target, implying upside of approximately 26% from current levels. Wieczynski says one of the reasons Red Rock sold off following what were impressive third-quarter earnings is because investors were hoping management would announce a new from-the-ground-up casino project, but all they got was news of another expansion at Durango Casino & Resort in Southwest Las Vegas.
Based on our conversations with investors, we think there was a significant amount of momentum behind the shares heading into earnings anticipating an announcement regarding a new greenfield development project before the end of FY25, which would have served as a catalyst for out-year earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates to be revised meaningfully higher,” observes Wieczynski.
Investors were likely hoping for updates on Red Rock’s planned casino hotel in the Inspirada community in Henderson, Nev., or plans for 123 acres of land the operator owns near the South Point Hotel Casino. Neither materialized in earnest on the company’s earnings conference call, perhaps compelling investors to look elsewhere.
“Thus, we believe investors who were playing for a new casino development announcement (which has now been taken off the table until mid-FY26 at the earliest, in our opinion) subsequently moved on, causing most of the selling pressure weighing on the share price in recent days,” adds Wieczynski.
Red Rock Stock Still Holds Allure
While shareholders may have been disheartened by the lack of news regarding a new Las Vegas-area casino development, there’s still ample fortification for the Red Rock bull thesis, which adds to the notion that the pullback could be a buying opportunity.
For example, a third expansion at Durango, which will bring a movie theater, bowling alley, and more gaming space, among other amenities, confirms the strength of that venue. Plus, Red Rock not embarking on a new development while it’s tending to Durango additions shows the operator isn’t biting off more than it chew, financially speaking.
“Putting the Durango phase three announcement aside, we actually think RRR had the strongest 3Q25 print and forward commentary of any brick-and-mortar casino operator under our coverage given the fact RRR experienced none of the weakness that showed up in other Las Vegas locals/Strip operators’ results,” said Wieczynski.
In conjunction with its third-quarter earnings update, Red Rock also announced a modest dividend hike and an increase to its share buyback plan, confirming its shareholder rewards story remains vibrant.
Red Rock a Top Growth Story
In what’s been a trying year for many casino stocks, finding standouts isn’t difficult. Buoyed by superior assets that pave the way for market share gains among higher-end Las Vegas locals, Red Rock may be one of the top long-term growth stories among gaming equities.
Some argue that the Las Vegas locals segment is the most compelling gaming demographic, and Red Rock is the only publicly traded pure-play name on that theme.
“We would argue that RRR is one of the best growth stories across gaming, reflecting a deep pipeline of high return on investment development/expansion projects,” concludes Wieczynski. “We believe RRR is uniquely insulated/positioned from the majority of any macro pressures versus other gaming companies inside our coverage.”
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