Jefferies has increased its price objective for Red Rock Resorts to $79.00 from $73.00 while keeping a Buy recommendation on the casino operator’s stock. The new target implies nearly 18% upside relative to the current share price of $66.81, which is trading just below its 52-week high of $66.99.
The price-target revision follows Red Rock’s fourth-quarter 2025 results, which outpaced analyst expectations and prompted Jefferies to describe the report as "likely a positive for shares." The firm pointed to the company’s standing in the Las Vegas Locals market as evidence of ongoing operational strength.
Red Rock’s margins were highlighted as a key point of efficiency. The company reported a gross profit margin of 62.4%, a metric Jefferies underscored in support of its view on the operator’s profitability profile.
On the capital front, Jefferies noted that Red Rock’s development work is progressing on schedule and within budget. Management announced an $87 million development phase at its Sunset Station property, and Jefferies indicated confidence in the company’s execution based on its track record. The investment firm also acknowledged that ongoing construction activity could partly offset near-term growth, but it reaffirmed expectations that returns from these projects will meet or exceed targets and reiterated its Buy recommendation.
Financial results for the quarter showed an earnings-per-share outcome of $0.75, beating the $0.49 estimate and representing a 53.06% earnings surprise. Revenue for the quarter came in at $511.8 million, slightly above the anticipated $500.93 million. Despite the earnings and revenue beats, the stock experienced a modest decline in after-hours trading following the release of results.
One valuation note included in the report observed that, per InvestingPro data, the stock appears slightly overvalued relative to its Fair Value. Jefferies’ price-target increase and Buy rating reflect its view that the company’s operational performance, margin strength and disciplined capital spending support further upside.
For investors tracking casino operators and companies tied to the Las Vegas Locals market, the combination of strong margin performance, successful project execution and near-term earnings beats will be material considerations. At the same time, construction-related offsets to growth create a watchpoint for near-term results.
Related financials and market note:
- Price target raised to $79.00 from $73.00 by Jefferies.
- Current share price cited at $66.81, near 52-week high of $66.99.
- Gross profit margin reported at 62.4%.
- Announced $87 million development phase at Sunset Station.
- Q4 2025 EPS of $0.75 versus $0.49 estimate; revenue $511.8 million versus $500.93 million estimate.