Citizens raises target for Las Vegas operator Red Rock Resorts to $71 on capital returns

Citizens raised Red Rock Resorts’ price target to $71 from $69, maintaining a Market Outperform rating, citing strong capital returns and expected growth despite construction headwinds. Analysts expect construction disruptions through 2026-2027, including an $8 million marketing cost, cutting Las Vegas Locals EBITDA by about 1% in 2026. Citizens models a 2027 recovery to $899 million EBITDA, up 6% from 2025. Red Rock's Q2 EPS beat at $0.67 versus $0.50. Shares trade at $64.27, with a PEG ratio of 0.97 suggesting undervaluation. Citizens expects about $550 million in invested capital to support 2028–2029 growth, without disruption. The stock was unchanged in after-hours trading.