The announcement of Las Vegas Sands Corp.’s (LVS) 3Q14 results drew the attention of Wall Street analysts who reviewed the results and recommended a target price.
Las Vegas Sands’ 200-day moving average share price is $73.84, with a respective 52-week high and low of $87.81 and $58.96.
The above chart shows that two analysts rated the stock as neutral or hold, and six assigned a buy or overweight rating to the stock. The above chart also shows that the company’s consensus rating is buy. And its consensus mean price target is ~$71. It should also be noted that the mean target price is 12% higher than the share price close on October 20, 2014.
Credit Suisse lowered its price target for Las Vegas Sands to $72 from $87, but reiterated its outperform rating. Credit Suisse lowered earnings per share, or EPS, estimates to $3.65 and $4.10, down from previous estimates of $3.93 and $4.32 for 2014 and 2015, respectively. According to Credit Suisse, the price target and EPS estimates declined due to weakness in Macau.
Morgan Stanley reissued their overweight rating on Las Vegas Sands in its recent research report. Meanwhile, the firm revised its target price for the company to $71.00 from $72.00.
“Macau results beat expectations despite concerns that expense pressures would lead to a miss, but margin pressure in premium mass is more forward looking and limits upside. We expect a positive reaction on the removal of the bear miss but lower PT to $71; reiterate LT OW but ST concern.”
Deutsche Bank downgraded Las Vegas Sands’ shares from a buy rating to a hold rating. The target price was revised to $65.00 from $74.00.
“LVS reported results that missed Consensus, though were likely slightly ahead of recent expectations. Our views remain consistent with those expressed in our recent downgrade as we continue to believe key segments, most notably grind mass, are likely to face meaningful competitive pressures when openings commence on Cotai. As premium mass margins remain pressured given competition, VIP struggles, and forward estimates remain elevated, we see shares as range bound, with downside support coming from the meaningfully raised dividend ($2.60 from $2.00). We remain at Hold and our $65 target is unchanged.”
Key stocks and ETF
Las Vegas Sands’ peers include MGM Resorts International (MGM), Wynn Resorts Limited (WYNN), Melco Crown Entertainment Ltd (MPEL), and Caesars Entertainment. A good way to get exposure to these companies is to invest in an ETF such as the Consumer Discretionary Select Sector SPDR Fund (XLY).
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