What are Wall Street analysts saying about Las Vegas Sands?



Las Vegas Sands draws analysts’ attention

Following Las Vegas Sands’ (LVS) announcement of its 4Q14 results, the company has drawn the attention of Wall Street analysts. Analysts are reviewing the results and giving their recommendations and target prices.

LVS’s 200-day moving average share price is $66.47 with a 52-week high and low of $87.81 and $52.31, respectively.

The above chart shows that three Wall Street analysts have rated the stock neutral or hold, and eight have assigned the stock a buy or overweight rating. The chart also shows that LVS has a consensus rating of buy and a consensus mean price target of ~$63, which is 13% higher than the share price close as of January 28, 2014. Stifel gave LVS the highest target price estimate of $72. Nomura calculated the lowest price estimate at $54.

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Morgan Stanley lowers price target

In a report published last Monday, Morgan Stanley reiterated an equal-weight rating on LVS shares, lowering its price target from $60 to $58.

Morgan Stanley noted, “We are reducing our ’15e property EBITDA by 3% to $4.87B (4% below cons) as 4Q results highlighted ongoing challenges in Macau (incl. higher promo costs). As a result, our PT drops from $60 to $58. We remain Equal-weight given LVS’ attractive long-term ‘mass market’ story, offset by near-term risks.”

Union Gaming Research upgrades rating

Union Gaming Research Macau upgraded its ratings to buy on all Macao gaming stocks it covers, including LVS, Galaxy Entertainment, Melco Crown Entertainment (MPEL), MGM China as a subsidiary of MGM Resorts (MGM), SJM Holdings, and Wynn Resorts’ (WYNN) Wynn Macau.

ETFs such as the VanEck Vectors Gaming ETF (BJK) help investors gain access to these casino companies. BJK has the highest exposure of ~8.3% in LVS.


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