On Thursday, Stifel analysts adjusted their outlook on Las Vegas Sands Corp. (NYSE:LVS), reducing the price target to $64 from the previous $66 while reaffirming a Buy rating on the company's shares. With the stock currently trading at $47.56, InvestingPro analysis indicates the company is undervalued, aligning with analyst targets ranging from $51 to $69. The analysts cited a range of factors influencing the Macau-focused gaming sector, which has recently fallen out of favor, yet they expressed confidence in Las Vegas Sands' prospects.
The revised price target reflects a slight revision in estimates, with the analysts emphasizing Las Vegas Sands' strategic investments in its Macau properties. They noted that the company has been steadily investing in refurbishing its assets, which is expected to lead to market share gains in the coming six months. This strategic focus has contributed to the company's strong revenue growth of 8.93% over the last twelve months.
Las Vegas Sands' management team was praised for their consistent efforts to improve their holdings in Macau and for making progress in reducing their Hong Kong stock stub. According to InvestingPro data, management has been aggressively buying back shares, demonstrating confidence in the company's future. Stifel's analysts highlighted the team's proven track record and suggested that the long-term potential of Macau's market should not be underestimated.
The report detailed a vision for the near-term share price of Las Vegas Sands, suggesting a clear path to over $60 per share as investor sentiment towards the Macau and Singapore regions improves. With an EBITDA of $3.73 billion and a market cap of $34.16 billion, the company shows strong fundamentals. Get access to more detailed insights and 7 additional ProTips for LVS with InvestingPro. The analysts anticipate that the entire group of Macau-centric gaming companies could outperform this year, driven by an acceleration in demand patterns which could lead to positive revisions in estimates.
Stifel's analysis concluded with a projection that Las Vegas Sands' shares are likely to benefit from these developments, hence the maintained Buy rating despite the modest reduction in the price target to $64, based on the 2026 sum-of-the-parts (SOTP) valuation method. The company currently trades at a P/E ratio of 23.3, which appears attractive relative to its near-term earnings growth potential.
In other recent news, Las Vegas Sands reported Q4 earnings and revenue that slightly missed analyst expectations, with adjusted earnings per share at $0.54, compared to estimates of $0.58, and revenue of $2.9 billion, just under the forecasted $2.91 billion. Despite this, Marina Bay Sands in Singapore delivered robust results, with adjusted property EBITDA rising to $537 million in Q4. 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.
Citi analysts recently upgraded their price target on Las Vegas Sands stock to $67.00, maintaining a Buy rating. This adjustment follows the company's impressive fourth-quarter EBITDA, which was driven by a record Mass Gross Gaming Revenue at Marina Bay Sands. Citi remains 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. These are the recent developments in the company's financial performance.
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