VICI Should I Buy
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VICI Properties Inc. is not a strong buy for a beginner investor with a long-term strategy at this time. While the stock has stable fundamentals and a strong dividend yield, the lack of significant growth catalysts, analyst downgrades, and structural risks tied to major tenants like Caesars and MGM suggest limited upside potential in the near term. Holding the stock may be a better option until more clarity emerges on external growth opportunities and lease overhangs.
The stock is trading at $29.23, with a positive MACD histogram (0.1) and neutral RSI (69.513). Moving averages are converging, indicating no strong trend. Key resistance levels are at $29.471 and $29.91, while support levels are at $28.05 and $27.611. The technical indicators suggest a neutral to slightly bullish trend but lack strong momentum.
VICI maintains a 100% occupancy rate across 93 entertainment properties.
Leases tied to the Consumer Price Index and a triple-net lease structure enhance financial stability and dividend growth potential.
Revenue and net income showed YoY growth in Q3 2025, with management raising full-year guidance.
Analyst downgrades and reduced price targets from multiple firms, citing limited external growth and tenant-related risks.
Approximately 74% of contractual rent comes from Caesars and MGM, posing a structural risk.
High net leverage (5.0x) and total debt of $17.1 billion limit financial flexibility.
In Q3 2025, revenue increased by 4.44% YoY to $1.007 billion, and net income grew by 3.98% YoY to $762 million. EPS increased by 1.43% YoY to $0.71. However, the gross margin dropped by 1.20% YoY to 101.24%. The company shows stable financial performance but lacks significant growth acceleration.
Recent analyst ratings show a trend of downgrades and reduced price targets. Scotiabank downgraded the stock to Sector Perform with a $30 price target, citing limited external growth and lease overhangs. Other firms like Cantor Fitzgerald and Barclays also lowered price targets, though some maintain an Overweight rating due to stable fundamentals and dividend yield.
