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On Thursday, CFRA analyst Zachary Warring adjusted the price target for Las Vegas Sands (NYSE:LVS) to $50 from the previous $51 while maintaining a Hold rating on the stock. The revision reflects a modest reduction based on a multiple of 10.0 times the firm’s 2025 EBITDA estimate, which is slightly below Las Vegas Sands’ two-year average forward EV/EBITDA multiple of 10.7x. According to InvestingPro data, the company maintains a GOOD financial health score, with the stock currently showing signs of being undervalued based on their proprietary Fair Value model. Warring’s analysis suggests that after experiencing significant growth in Macao and Singapore post-lockdowns, the company is expected to encounter slower growth as travel normalizes and China’s economy remains subdued.
Las Vegas Sands reported a Q4 normalized EPS of $0.54, which was $0.04 short of consensus estimates, on revenues of $2.90 billion, marginally higher than the expected $2.92 billion. InvestingPro analysis reveals the company maintains a healthy gross profit margin of 38.5% and has achieved revenue growth of 8.9% over the last twelve months. Despite the revenue surpassing estimates, Macao’s revenues saw a 5% year-over-year decline in the fourth quarter, with adjusted EBITDA falling 13% to $571 million. Conversely, Marina Bay Sands in Singapore reported a 7% increase in revenue year-over-year, although its adjusted EBITDA saw a slight 1% decrease to $537 million.
During the fourth quarter, Las Vegas Sands actively returned capital to shareholders, repurchasing $450 million in shares in the U.S. and an additional $250 million in Asia. InvestingPro Tips highlight that management has been aggressively buying back shares, with several more insights available to subscribers. Warring highlights that the company’s growth is anticipated to decelerate as travel patterns stabilize following the pandemic-related surge.
Warring also provided insights into future earnings, maintaining the 2025 EPS estimate at $2.50 and initiating a 2026 EPS forecast at $2.65. The broader analyst consensus shows a bullish lean, with price targets ranging from $51 to $69. The analyst’s outlook for Las Vegas Sands is cautious, with an expectation that the shares are currently trading near fair value. For deeper insights into LVS’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. The neutral stance suggests that CFRA sees limited upside or downside potential for the stock at the revised price target.
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 and the company’s Macao operations delivered robust results, with adjusted property EBITDA rising to $537 million and $571 million respectively in Q4. The company 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, Las Vegas Sands reported a net income of $1.45 billion, or $1.96 per diluted share, an increase from the previous year.
Stifel analysts adjusted their outlook on Las Vegas Sands, reducing the price target to $64 from the previous $66 while reaffirming a Buy rating. Citi analysts recently upgraded their price target on Las Vegas Sands stock to $67.00, maintaining a Buy rating. These adjustments are based on the company’s impressive fourth-quarter EBITDA and the company’s strong revenue growth of 8.93% over the last twelve months. These are recent developments in the company’s financial performance.
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