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Red Rock Resorts Inc . (NASDAQ:RRR) stock has tumbled to a 52-week low, touching $42.45 amidst a challenging year for the gaming and hospitality industry. InvestingPro analysis indicates the stock is currently in oversold territory, with a notable gross profit margin of 66.7% demonstrating operational efficiency despite market pressures. The company, known for its portfolio of casino and entertainment properties, has seen a significant downturn over the past year, with its stock price declining by 25.94%. Investors are closely monitoring the stock as it navigates through the economic headwinds that have impacted consumer discretionary spending and travel, factors that are critical to Red Rock Resorts’ core business operations. The 52-week low serves as a critical marker for the company, reflecting investor sentiment and the potential for future recovery. According to InvestingPro, analyst price targets suggest potential upside, with comprehensive analysis and 8 additional ProTips available to subscribers looking to make informed investment decisions in this volatile market.
In other recent news, Red Rock Resorts reported a robust fourth quarter for 2024, with earnings per share (EPS) of $0.76, significantly exceeding the forecasted $0.43. The company also surpassed revenue expectations, posting $495.7 million against the anticipated $491.73 million. Mizuho (NYSE:MFG) Securities raised its price target for Red Rock Resorts to $52, acknowledging the company’s EBITDA of $202 million, which outperformed consensus estimates despite a $6 million impact from sports betting. Truist Securities also increased its price target to $56, noting the strong performance of Red Rock Resorts’ Durango property, but highlighted potential challenges from ongoing construction expected to affect 2025 earnings.
Jefferies maintained a Hold rating while slightly raising the price target to $52, reflecting a cautious outlook due to anticipated business disruptions from renovations. JMP Securities expressed confidence in Red Rock Resorts by lifting the price target to $59, citing a projected 5% rise in EBITDA by 2026 and strong discretionary free cash flow potential. Analysts from JMP Securities expect the company to generate a significant amount of discretionary free cash flow, estimated at $520 million in 2026. These updates from various firms indicate a mixed but generally positive outlook on Red Rock Resorts, with attention to its strong financial results and future growth potential amidst renovation challenges.
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