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On Thursday, Stifel analysts reaffirmed their Buy rating for Las Vegas Sands stock (NYSE: NYSE:LVS), maintaining a price target of $57.00, well above the current trading price of $41.35. According to InvestingPro data, analyst consensus remains strongly bullish, with targets ranging from $43 to $63.50. The decision follows the firm’s participation in the annual Cross Sector Insights Conference, where they hosted Las Vegas Sands’ Investor Relations representative, Alistair Scobie.
Stifel analysts highlighted that visitation trends in Macau remain strong, but spending per visitor is currently subdued, primarily due to macroeconomic factors. This is particularly evident at the base mass level, where improvements in visitor spending are uncertain. Despite this, Las Vegas Sands remains confident that this customer segment will eventually rebound, supported by the company’s impressive gross profit margin of 79% and strong EBITDA of $3.69 billion over the last twelve months.
Macau’s market has increasingly relied on direct incentives, which Las Vegas Sands aims to adjust to regain market share. Stifel analysts believe that while this strategy might affect the company’s margins in the short term, it could lead to a significant expansion in EBITDA levels in the long run. InvestingPro analysis reveals the company maintains a GOOD financial health score, though investors should note that short-term obligations currently exceed liquid assets with a current ratio of 0.59.
In the report, Stifel analysts acknowledge that while near-term trends may remain volatile, they maintain a positive outlook on Las Vegas Sands. The recent sell-off in the stock, which has declined 22% over the past six months, is seen as creating an attractive risk/reward opportunity, reinforcing the firm’s Buy rating. For deeper insights into LVS’s valuation and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, along with additional ProTips and detailed financial metrics.
In other recent news, Las Vegas Sands Corp. reported its first-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $0.59, narrowly missing the forecast of $0.60, while revenue came in at $2.86 billion, falling short of the anticipated $2.94 billion. Despite these challenges, the Marina Bay Sands property in Singapore performed exceptionally well, with hold-adjusted EBITDA reaching $605 million, surpassing both Mizuho (NYSE:MFG)’s estimate of $495 million and the market expectation of $525.6 million.
Mizuho Securities adjusted its financial outlook on Las Vegas Sands, reducing the price target to $47.00 from the previous $57.00, while maintaining an Outperform rating. Meanwhile, Stifel analysts also adjusted their outlook, cutting the price target to $57.00 from $64.00 but maintaining a Buy rating. Both firms cited challenges in Macau and broader market conditions as reasons for their adjustments. Stifel’s analysts have scaled back their financial projections for Las Vegas Sands, taking into account a challenging economic environment in China and slower market share expansion.
Las Vegas Sands continues to invest in its Macau and Singapore properties, and the board has increased the share repurchase authorization to $2 billion. Despite the earnings miss, the company’s stock saw a modest increase in aftermarket trading. Analysts noted mixed results, with strong performance at Marina Bay Sands contrasting with challenges in Macau, where the company faced revenue declines in non-rolling tables and increased payroll costs.
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