NEW YORK (TheStreet) -- Shares of Las Vegas Sands Corp. (LVS) are declining 0.89% to $51.08 in Friday's afternoon trading after Barclays lowered its price target to $55 from $59. The firm is maintaining its "overweight" rating.
Analyst Felicia Hendrix said that it is "too early to call a bottom" on the Macau gaming market, due to the ongoing persistent headwinds facing the market.
While many investors are focusing on when recent sharp declines in gross gaming revenues will subside, she said she expects the trend of negative newsflow to continue and weigh on stocks.
By the end of the year, she pointed out that the declines should start to be less steep.
Additionally, she noted the company's strong dividend yield of 5% and commitment to grow dividends by at least 10% annually "is compelling."
About 2.05 million shares of Las Vegas Sands have traded hands as of 1:32 pm, compared to its average trading volume of about 5.34 million shares.
Las Vegas Sands develops, owns, and operates integrated resorts in Asia and the U.S.
TheStreet Ratings team rates LAS VEGAS SANDS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAS VEGAS SANDS CORP (LVS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LVS, with its decline in revenue, underperformed when compared the industry average of 7.4%. Since the same quarter one year prior, revenues fell by 24.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- LAS VEGAS SANDS CORP's earnings per share declined by 32.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $3.51 versus $2.79 in the prior year. For the next year, the market is expecting a contraction of 22.5% in earnings ($2.72 versus $3.51).
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 32.91%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 32.63% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income has significantly decreased by 34.0% when compared to the same quarter one year ago, falling from $776.19 million to $511.92 million
- You can view the full analysis from the report here: LVS Ratings Report