Published on: November 3, 2025, 12:05h.
Updated on: November 3, 2025, 12:05h.
- Stock faced a challenging October
- Recent decline enhances its valuation appeal
- Analyst highlights Red Rock as a leading growth candidate among casino stocks
Red Rock Resorts (NASDAQ: RRR) experienced a tough October, with stock prices dropping over 10%, including a significant 7.12% decrease last week. However, one analyst suggests this downturn may offer a great opportunity for long-term investors to enter the market.
In an updated client report, Stifel analyst Steven Wieczynski upgraded Red Rock stock from “hold” to “buy,” setting a price target of $68, suggesting a potential upside of around 26% from current levels. He noted that the stock sold off following strong third-quarter earnings due to investor expectations of an announcement regarding a new ground-up casino project. Instead, the company announced an expansion at the Durango Casino & Resort in Southwest Las Vegas.
“From our discussions with investors, we believe there was considerable anticipation for a new greenfield development project announcement before the end of FY25. This would have significantly boosted future earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts,” remarked Wieczynski.
Investors likely anticipated updates on Red Rock’s plans for a casino hotel in the Inspirada community of Henderson, Nevada, or the 123 acres of land near the South Point Hotel Casino. Unfortunately, such information was not provided during the company’s earnings call, leading investors to explore other options.
“Consequently, we believe that investors betting on a new casino announcement (which we expect will be delayed until at least mid-FY26) shifted their focus elsewhere, resulting in the recent selling pressure on the stock,” Wieczynski added.
Red Rock Stock Remains Attractive
Although shareholders may have been disappointed by the lack of news regarding new Las Vegas-area developments, there are still several compelling reasons to consider Red Rock as a strong investment. This pullback could very well be a favorable buying opportunity.
For instance, the third expansion at Durango will introduce a movie theater, bowling alley, and additional gaming space, reinforcing the venue’s success. Furthermore, Red Rock’s decision to hold off on new developments while enhancing existing locations demonstrates financial prudence.
“Aside from the Durango phase three announcement, we believe RRR had the most robust 3Q25 performance and future outlook of any brick-and-mortar casino operator we cover, especially considering it did not experience the downturn observed in other Las Vegas locals and Strip operators,” stated Wieczynski.
Additionally, alongside its third-quarter earnings report, Red Rock announced a modest dividend increase and an expansion of its share buyback program, affirming its commitment to shareholder returns.
Red Rock: A Leading Growth Option
Even in a challenging year for several casino stocks, identifying top performers is achievable. Supported by premier assets that enable market share growth among Las Vegas locals, Red Rock stands out as one of the most promising long-term growth stories in the gaming sector.
Many believe that the Las Vegas locals segment is the most lucrative gaming market, and Red Rock is the sole publicly traded company focusing exclusively on this sector.
“We argue that RRR is one of the most compelling growth narratives within the gaming industry, backed by a robust pipeline of high return on investment development and expansion initiatives,” concluded Wieczynski. “We believe RRR is uniquely positioned to be less affected by broader economic pressures compared to other gaming firms we monitor.”