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Friday, March 29, 2024

UPDATE: Bank Of America Downgrades Las Vegas Sands Amid Macau Concerns

Courtesy of Benzinga.

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Bank of America downgraded its rating on Las Vegas Sands Corp. (NYSE: LVS) to Neutral and lowered its price target from $72 to $67 in a report issued Tuesday.

Analysts led by Shaun C. Kelley believed that "Macau’s challenges are likely to last longer than we previously anticipated. Macau’s secular story remains powerful, but in our view the magnitude of 1) China’s anti-corruption campaign, 2) China’s economic slowdown and 3) new supply growth, may keep the stocks range bound longer than we had initially hoped."

Recently, Sterne Agee took a different position and saw long-term gain opportunities in Macau.

Kelly concluded that the “combination of 1) a disappointing Golden Week (-30 percent vs. our estimated -25 percent), 2) weak VIP revenues in October’s second week and 3) expected disruptions from the smoking ban mean that now our 0 percent forecasts for 2014 and 2015 are at risk."

"The downside case of a further/more sustained unwind in the VIP business seems more likely, and there is enough price risk (15-20 percent+) from current levels to put us on the sidelines before we feel comfortable arguing for valuation support," according to the report.

Las Vegas Sands Corp. recently traded at $59.27, up 0.5 percent.

Latest Ratings for LVS

Date Firm Action From To
Oct 2014 Bank of America Downgrades Buy Neutral
Oct 2014 Deutsche Bank Downgrades Buy Hold
Sep 2014 Bank of America Maintains Buy

View More Analyst Ratings for LVS
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill Lynch Shaun C. Kelly Sterne AgeeAnalyst Color Downgrades Price Target Analyst Ratings

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