TipRanks
Mon, August 2, 2021, 10:26 PM
Las Vegas Sands (LVS)
We’ll wrap up with a change of pace, and look at Las Vegas Sands, the casino and resort company. The company owns 8 resort properties – five in Macao, China, one in Singapore, and two in its home of Las Vegas. Pre-COVID, Vegas Sands saw $27 billion in global revenue for 2019 – but in 2020, that number was only $3.614 billion. While quarterly revenues in 1H21 have remained above $1 billion, they have not yet regained pre-pandemic levels.
In addition, the spread of the Delta variant, and the possibility of a new round of lockdown and travel restrictions, slammed the stock starting in late spring. Shares are down 36% from their mid-March peak. In its Q2 earnings release, management noted that business has still not returned to normal and that LVS continues to run quarterly losses – although revenues have improved from the low point reached in 2Q20.
On positive notes, Sands has been using this relative down time to expand its facilities in Macao, and the company has over $2 billion in unrestricted cash.
Writing from Deutsche Bank, 5-star analyst Carlo Santarelli writes: “We believe investors broadly remain confident in the eventual return to normalcy in both Macau and Singapore, and as such, given the difficulty in identifying the timing of the pivot in sentiment, we remain Buy rated. Our rating is based on our view that; 1) stronger top-line growth trends, 2) growth projects becoming more visible, 3) the concession overhang alleviating, and 4) the eventual return of capital, will all drive investor interest.
Overall, Santarelli looks at LVS as a long-term stock, with current low prices as a buy-in opportunity. His Buy rating is backed by a $73 price target indicating his confidence in a one-year upside of 73%. (To watch Santarelli’s track record, click here)
Most of the Street have not given up on the company just yet, as TipRanks analytics showcase LVS as a Strong Buy. Out of 5 analysts polled in the last 3 months, 4 are bullish on the stock, while only one remains sidelined. With a potential upside of ~47%, the stock’s consensus target price stands at $62. (See LVS stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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