Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Tuesday, Susquehanna maintained a Positive rating on Red Rock Resorts (NASDAQ:RRR) but reduced the price target for the company’s shares from $66.00 to $60.00. Currently trading at $48.64, the stock has shown notable volatility, according to InvestingPro data. The adjustment comes ahead of the company’s fourth-quarter earnings report, which is scheduled to be released on February 11, 2025.
Analysts at Susquehanna have kept their fourth-quarter 2024 revenue and EBITDA estimates for Red Rock Resorts at $487 million and $200 million, respectively. These projections are consistent with the consensus for revenue and 1.5% higher for EBITDA. The company has demonstrated impressive financial performance, maintaining a robust gross profit margin of 62% and generating $760.69 million in EBITDA over the last twelve months. The firm’s stance is based on the belief that despite an unfavorable sports hold in October, which resulted in an $8 million negative impact, and a similar estimated impact of approximately $6 million in December, the overall performance of the company was bolstered by stronger slot volumes and hold in both Boulder and Balance of County regions.
The analysts noted that while the sports betting segment presented challenges for Red Rock Resorts, the strength in other areas of the company’s operations helped to mitigate the negative effects. As a result, the firm has reiterated its Positive rating on the stock.
Despite maintaining a favorable outlook for the fourth quarter, Susquehanna has slightly lowered its projections for Red Rock Resorts for the years 2025 and 2026. This revision is reflected in the reduced price target, which has been adjusted to $60 from the previous target of $66.
Investors are now looking forward to the upcoming earnings report from Red Rock Resorts, which will provide further insights into the company’s financial performance and the accuracy of Susquehanna’s estimates. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading below its intrinsic value, suggesting potential upside opportunity. The report will also offer a clearer picture of the company’s trajectory for the coming years, as well as the impact of the recent challenges in the sports betting segment on its overall business. For comprehensive analysis including 7 additional ProTips and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro.
In other recent news, Red Rock Resorts disclosed record-breaking Q3 results, showing significant growth in net revenues and adjusted EBITDA. The company’s Las Vegas operations contributed notably to this success, with net revenues increasing by 13.9% year-over-year. The company also announced plans for major renovations and the development of new properties in the Las Vegas Valley. However, the company’s financial performance has led to changes in analyst ratings. Jefferies analyst Cassandra Lee downgraded the stock from Buy to Hold, citing concerns over near-term disruptions and potential expansion plans. Similarly, Mizuho (NYSE:MFG) Securities shifted its stance, downgrading the stock from Outperform to Neutral due to potential risks to the company’s financial estimates for 2025 and a slower-than-anticipated development and construction pipeline. These recent developments indicate a shift in perspective regarding Red Rock Resorts’ financial future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.