NEW YORK (TheStreet) -- Shares of Las Vegas Sands Corp (LVS) were trading lower by 0.24% to $50.85 Monday morning, after analysts at Goldman Sachs cut their rating on the company to "neutral" from "buy."
The firm also decreased its price target to $52 from $60, saying the casino operator faces tough challenges in its two largest gaming markets, the U.S. and Macau.
Goldman Sachs analysts believe the company has over-exposure to Macau, the only region in China where gambling is legal.
Last Friday, analysts at Barclays lowered their price target on shares of Las Vegas Sands to $55 from $59.
The firm kept its "overweight" rating, and said the Macau gaming market continues to face ongoing persistent headwinds.
Las Vegas-based Las Vegas Sands develops, owns, and operates integrated resorts in Asia and the U.S.
The company owns the Venetian Macao Resort Hotel, Sands Cotai Central, the Four Seasons Hotel Macao, the Plaza Casino, and the Sands Macao in Macau, the People's Republic of China.
Separately, 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 a few notable strengths, 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 30.06%, 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