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On Thursday, Stifel analysts adjusted their outlook on Las Vegas Sands stock (NYSE:LVS), reducing the price target to $57.00 from the previous $64.00 while still holding a Buy rating on the shares. The new target aligns with the broader analyst consensus, which ranges from $45 to $62, according to InvestingPro data. The analysts expressed a cautious stance due to the current geopolitical and macroeconomic uncertainties surrounding China and Macau, which they acknowledged are difficult to forecast.
The firm’s decision to maintain a positive view on Las Vegas Sands comes after a recent sell-off, which analysts believe has presented an attractive risk/reward scenario. The stock has declined over 33% in the past six months, while maintaining impressive gross profit margins of 79.4%. However, they emphasized that their optimistic thesis is highly risky and best suited for investors with a longer-term investment horizon.
Stifel’s analysts have also scaled back their near-term and long-term financial projections for Las Vegas Sands, factoring in a more challenging economic environment in China and a slower expansion of market share for the company. The revised EBITDA estimates are now approximately 5% below the consensus.
The analysts noted that until the consensus estimates are adjusted closer to Stifel’s more conservative figures, which take into account a tougher macroeconomic climate, investor interest in Las Vegas Sands and similar companies is likely to remain limited.
In other recent news, Las Vegas Sands Corp reported mixed financial results for the first quarter of 2025. The company’s earnings per share (EPS) came in at $0.59, narrowly missing the analyst forecast of $0.60, while revenue totaled $2.86 billion, falling short of the expected $2.94 billion. Despite these misses, the Marina Bay Sands property in Singapore delivered a record EBITDA of $605 million, surpassing both Mizuho (NYSE:MFG)’s estimate of $495 million and the market expectation of $525.6 million. However, the Macau segment faced challenges, with EBITDA reported at $535 million, reflecting issues such as revenue declines in non-rolling tables and increased payroll costs.
Mizuho Securities recently adjusted its financial outlook on Las Vegas Sands, reducing the price target from $57 to $47, yet maintaining an Outperform rating on the company’s shares. This decision reflects the firm’s recalibrated expectations based on the recent earnings report and market conditions. The company continues to focus on strategic investments in Macau and Singapore properties, with plans to enhance non-gaming amenities and smart table technology. Additionally, Las Vegas Sands has increased its share repurchase authorization to $2 billion, indicating confidence in its future growth potential.
Despite the financial challenges in Macau, the company’s leadership remains optimistic about growth opportunities in the region. Las Vegas Sands is exploring a potential third-party transaction for a New York casino license, although it has decided not to bid for a license itself. The company’s strategic focus on maintaining its competitive positioning and enhancing shareholder value through share repurchases underscores its commitment to long-term growth.
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