Mizuho cuts Las Vegas Sands stock price target to $47

On Thursday, Mizuho (NYSE:MFG) Securities adjusted its financial outlook on Las Vegas Sands Corp (NYSE:LVS), reducing the price target to $47.00 from the previous $57.00. Despite this change, the firm has maintained an Outperform rating on the company’s shares. The stock, currently trading at $34.38, has experienced significant pressure, declining nearly 34% over the past six months. According to InvestingPro data, five analysts have recently revised their earnings expectations downward for the upcoming period.

Las Vegas Sands reported its earnings with hold-adjusted Macau EBITDA, excluding Ferry and Other income, at $538 million. This figure fell short of both Mizuho’s projection of $603 million and the broader market consensus of $609.4 million. The company faced challenges due to a decline in market share and margin compression. Nevertheless, InvestingPro data shows the company maintains impressive gross profit margins of 79.4%, with total EBITDA reaching $3.76 billion in the last twelve months.

However, the Marina Bay Sands (MBS) property in Singapore showcased exceptional performance. The hold-adjusted EBITDA for MBS was reported at $605 million, surpassing Mizuho’s estimate of $495 million and the market expectation of $525.6 million.

The analyst from Mizuho commented on the financial performance, noting the mixed results with specific reference to the strong showing at MBS. The firm’s decision to maintain an Outperform rating indicates their positive outlook on Las Vegas Sands’ potential, despite the adjustments in Macau’s performance and the revised price target.

The revised price target of $47 reflects the firm’s recalibrated expectations for Las Vegas Sands, taking into account the recent earnings report and market conditions. This new target represents Mizuho’s current valuation of the company’s stock based on their analysis.

In other recent news, Las Vegas Sands Corp. reported its first-quarter 2025 earnings, which fell slightly short of analyst expectations. The company posted an earnings per share (EPS) of $0.59, just below the forecast of $0.60, and reported revenue of $2.86 billion, missing the anticipated $2.94 billion. Despite these misses, the company achieved record EBITDA at Marina Bay Sands, highlighting robust performance in Singapore. Las Vegas Sands continues to invest in its Macau and Singapore properties, with a strategic focus on non-gaming investments and smart table technology. The company has increased its share repurchase authorization to $2 billion, demonstrating confidence in its future prospects. Analysts from firms like Deutsche Bank (ETR:DBKGn) have noted the company’s ongoing efforts to enhance shareholder value through share repurchases. Las Vegas Sands is also exploring a potential third-party transaction for a New York casino license, though it has decided not to bid for a license itself. These developments reflect the company’s strategic initiatives and its commitment to maintaining leadership in the gaming industry.

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