Red Rock Resorts downgraded to Hold from Buy at Jefferies

Jefferies downgraded Red Rock Resorts (RRR) to Hold from Buy with a price target of $51, down from $64. The firm says that despite the strong performance from Durango since opening in December 2023, near-term disruptions and potential expansion plans at the property and other assets in Red Rock’s portfolio suggest its leverage will remain elevated in the near-term. In 2025, Jefferies anticipates renovations at Green Valley Ranch, Sunset Station and Durango to negatively impact property EBITDA by $11.5M, $5.4M and $5.9M, respectively. Further, the potential for further expansion of Durango and beginning of new property developments are under consideration at present, the analyst tells investors in a research note.