On Thursday, Citi analysts, led by George Choi, increased their price target on Las Vegas Sands stock (NYSE:LVS) to $67.00, up from the previous $64.50, while maintaining a Buy rating. The adjustment follows Las Vegas Sands' impressive fourth-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) which exceeded $500 million, driven by a record Mass Gross Gaming Revenue (GGR) of $746 million at Marina Bay Sands (MBS). This figure surpassed the previous high by approximately 9%. According to InvestingPro data, LVS maintains impressive gross profit margins of 76.4% and has generated $3.86B in EBITDA over the last twelve months. The stock currently appears undervalued based on InvestingPro's Fair Value analysis.
The strong performance at MBS is attributed to the introduction of new gaming and non-gaming products specifically designed for high-net-worth individuals in Asia. According to management, the surge in EBITDA is not a one-off event and is expected to continue growing, particularly after the completion of the Tower 3 renovation in the first half of 2025. The company's revenue has shown strong momentum, with a 32% year-over-year growth rate.
In Macau, despite the events of the fourth quarter of 2024, Citi's outlook for Sands China (OTC:SCHYY) in the fiscal year 2025 remains unchanged. The firm recently concluded a 30-day negative catalyst watch on Sands China. Citi analysts are optimistic about the EBITDA recovery prospects for Las Vegas Sands' properties in Macau, forecasting a 25% year-over-year increase for the fiscal year 2025, bolstered by the phased opening of the Londoner Grand. InvestingPro subscribers can access additional insights, including 8 key investment tips and a comprehensive Pro Research Report that provides deep-dive analysis of LVS's financial health and growth prospects.
Las Vegas Sands holds the title of Citi's Global Top Pick in the sector. The raised price target to $67.00 reflects Citi's increased EBITDA forecast for Marina Bay Sands, signaling confidence in the company's ongoing and future performance. With a market capitalization of $31.5B and trading at a P/E ratio of 21.6, the company continues to demonstrate solid fundamentals and growth potential.
In other recent news, Las Vegas Sands Corp. reported Q4 earnings and revenue that slightly missed analyst expectations. The casino operator reported adjusted earnings per share of $0.54, compared to estimates of $0.58, and revenue of $2.9 billion, just shy of the forecasted $2.91 billion. Despite the slight miss, the company's Marina Bay Sands in Singapore delivered strong results, with adjusted property EBITDA rising to $537 million in Q4. On the other hand, the company's Macao operations reported adjusted property EBITDA of $571 million.
Las Vegas Sands also repurchased $450 million of its common stock during the quarter and increased its ownership of Sands China Ltd (HK:1928). to 72.3% by acquiring $250 million of its stock. For the full year 2024, the company reported a net income of $1.45 billion, or $1.96 per diluted share, an increase from the previous year. These developments highlight the company's ongoing financial activities and its continued focus on growth opportunities in both Macao and Singapore.
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