JPMorgan Chase & Co. Cuts Red Rock Resorts (NASDAQ:RRR) Price Target to $66.00

Key Points

• JPMorgan cut its price target on Red Rock Resorts from $73 to $66 while maintaining an "overweight" rating, a target that implies roughly a 22% upside from the current price.
• Q1 results showed an EPS beat ($0.73 vs. $0.56) with revenue essentially in line at $507.3M and a $0.26 quarterly dividend, but management's flagged heavy capex and subsequent analyst target downgrades drove the stock down ~3.7% to $53.96 on elevated volume.
• Analyst consensus is a "Moderate Buy" (12 Buys, 4 Holds) with a consensus target of $68.87; the stock has a $5.67B market cap, PE of 17.24, and a 12‑month range of $41.90–$68.99.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its price objective cut by equities researchers at JPMorgan Chase & Co. from $73.00 to $66.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 22.31% from the company's current price.

Several other brokerages also recently weighed in on RRR. Truist Financial lowered their target price on shares of Red Rock Resorts from $70.00 to $68.00 and set a "buy" rating for the company in a research note on Thursday. Morgan Stanley lifted their price objective on shares of Red Rock Resorts from $62.00 to $63.00 and gave the stock an "equal weight" rating in a research note on Wednesday, April 8th. Susquehanna lowered their price objective on shares of Red Rock Resorts from $77.00 to $70.00 and set a "positive" rating for the company in a research note on Thursday. Mizuho set a $77.00 price objective on shares of Red Rock Resorts in a research note on Wednesday, February 11th. Finally, Stifel Nicolaus set a $72.00 price objective on shares of Red Rock Resorts in a research note on Thursday. Twelve equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $68.87.

Red Rock Resorts Stock Down 3.7%

RRR traded down $2.10 during trading on Thursday, hitting $53.96. The stock had a trading volume of 3,126,328 shares, compared to its average volume of 843,728. The company has a market capitalization of $5.67 billion, a PE ratio of 17.24, a PEG ratio of 2.42 and a beta of 1.48. Red Rock Resorts has a twelve month low of $41.90 and a twelve month high of $68.99. The company has a debt-to-equity ratio of 10.26, a quick ratio of 0.74 and a current ratio of 0.79. The stock has a 50 day simple moving average of $57.67 and a two-hundred day simple moving average of $59.26.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $0.73 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.17. The company had revenue of $507.32 million during the quarter, compared to the consensus estimate of $507.77 million. Red Rock Resorts had a net margin of 9.35% and a return on equity of 58.13%. Red Rock Resorts's revenue was up 1.9% compared to the same quarter last year. During the same period last year, the firm earned $0.75 earnings per share. On average, research analysts predict that Red Rock Resorts will post 2.12 earnings per share for the current year.

Institutional Trading of Red Rock Resorts

Several institutional investors have recently modified their holdings of the stock. CWM LLC grew its position in shares of Red Rock Resorts by 4.6% in the third quarter. CWM LLC now owns 4,663 shares of the company's stock valued at $285,000 after purchasing an additional 205 shares during the period. Arizona State Retirement System grew its position in shares of Red Rock Resorts by 1.5% in the third quarter. Arizona State Retirement System now owns 15,103 shares of the company's stock valued at $922,000 after purchasing an additional 219 shares during the period. GAMMA Investing LLC grew its position in shares of Red Rock Resorts by 53.8% in the fourth quarter. GAMMA Investing LLC now owns 752 shares of the company's stock valued at $47,000 after purchasing an additional 263 shares during the period. Commonwealth Equity Services LLC grew its position in shares of Red Rock Resorts by 3.2% in the fourth quarter. Commonwealth Equity Services LLC now owns 10,383 shares of the company's stock valued at $643,000 after purchasing an additional 324 shares during the period. Finally, California State Teachers Retirement System grew its position in shares of Red Rock Resorts by 0.7% in the second quarter. California State Teachers Retirement System now owns 46,720 shares of the company's stock valued at $2,431,000 after purchasing an additional 343 shares during the period. Institutional investors and hedge funds own 47.84% of the company's stock.

Key Stories Impacting Red Rock Resorts

Here are the key news stories impacting Red Rock Resorts this week:

• Positive Sentiment: Q1 beat on the bottom line — Red Rock reported EPS of $0.73, ahead of consensus (~$0.56), showing better-than-expected profitability for the quarter. This EPS beat offsets some revenue concerns and supports valuation. Read More.
• Positive Sentiment: Dividend declared — the company announced a quarterly dividend of $0.26/share (annualized yield ~1.9%), payable June 30 (record June 15). The payout signals steady cash return to shareholders. (Company announcement)
• Neutral Sentiment: Revenue essentially in line — consolidated net revenues were $507.3M, roughly flat with expectations (consensus ~$507.8M) and up 1.9% year‑over‑year; not a meaningful upside catalyst. Read More.
• Neutral Sentiment: Operational commentary emphasized ongoing construction/capex — management flagged large development activity (which helps future growth but raises near-term costs/cash use). Investors will watch how projects affect margins and free cash flow. Read More.
• Negative Sentiment: Analysts trimmed price targets — several firms cut targets (e.g., Citizens Jmp, Benchmark, Truist, Wells Fargo) even where ratings remain buy/outperform. The downward PT revisions suggest reduced near‑term upside expectations and likely pressure the stock. Read More.
• Negative Sentiment: Market reaction: elevated volume and selling — after the mixed print (EPS beat but revenue inline and capex concerns + PT cuts), the shares sold off, indicating investor caution on growth vs. near-term cash outflows. (Market session activity)

Red Rock Resorts Company Profile

Red Rock Resorts, Inc NASDAQ: RRR is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company's flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.

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