Las Vegas Sands Analysts Bet on Macau, Singapore Potential

Las Vegas Sands analysts touted the casino operator's Macau and Singapore properties as it looks to recover from the coronavirus pandemic.
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Las Vegas Sands  (LVS) - Get Report analysts continued to bet on the casino operator, largely on the strength of its properties in Macau and Singapore, after it reported that it swung to a third-quarter loss during the pandemic.

At last check the shares were 6.3% higher at $48.85. They have traded on Thursday up as much as 9.4%, at $50.25.

Jefferies analyst David Katz reiterated his buy rating on the stock, while edging up his price target to $55 a share from $54. Its 52-week high is above $74, set in January.

"The indications that the company could be approaching break-even in Macau, coupled with the continued confidence [that] market access should progress in the coming months, should be taken positively by the market," Katz said in an investor note.

Katz said the company remains confident in its Marina Bay Sands property in Singapore and is "committed to pursue long-term investments there."

The company remains committed to spending $3.3 billion on a new luxury tower at its Marina Bay Sands property and a new arena, with a 2024 opening planned, the Las Vegas Journal-Review reported.

The company swung to a loss of $731 million from net income of $669 million in the year-earlier quarter. The adjusted loss came to 67 cents a share, missing the Zacks analyst consensus estimate of a loss of 58 cents. Revenue was $586 million, down 82% from a year earlier.

Sheldon Adelson, chairman and chief executive, said in a statement that "we are fortunate that our financial strength supports our previously announced capital expenditure programs in both Macao and Singapore, as well as our pursuit of growth opportunities in new markets."

Stifel analyst Steven Wieczynski lowered his target on Las Vegas Sands to $60 from $64, while affirming his buy rating. 

The analyst expects the company's "dominant position" in Macau, "the world's most prolific gaming market," to produce outsized and sustainable long-term returns for shareholders. 

JPMorgan analyst Joseph Greff raised his price target to $58 from $50, while keeping an overweight rating. 

"While early, it genuinely feels like LVS’s properties in Macau – as well as Singapore – are on the cusp of more meaningful positive inflections, given positive trend changes in October versus prior periods," he said. 

"We also think it’s worthwhile to note that this is against the backdrop of low investor expectations, negative to apathetic investor sentiment, and share price underperformance of the Macau gaming operators, in general."

Wynn Resorts  (WYNN) - Get Report, MGM Resorts International  (MGM) - Get Report, and Caesars Entertainment  (CZR) - Get Report were all in positive territory in Thursday trades.