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With a market cap of $32.7 billion, Las Vegas Sands Corporation (LVS) is a prominent developer of integrated resorts with operations primarily in the U.S. and Asia. Headquartered in Las Vegas, it operates three properties in Las Vegas, including The Venetian Casino and The Palazzo, along with an Expo and Convention Center in the U.S. In Asia, the company owns and operates several properties in Macao, China, and one in Singapore.
Shares of the resort company have trailed behind the broader market over the past year. While LVS has declined 22.1% over this time frame, the broader S&P 500 Index ($SPX) is up 25.2%. In 2024, the stock has tumbled 10.8%, while SPX rallied 10.4% on a YTD basis.
Zooming in further, LVS has underperformed the S&P 500 Cons Disc Sector SPDR (XLY) over the past year. The exchange-traded fund has gained 14.5%, compared to LVS’ double-digit losses for the period.
Shares of Las Vegas Sands plunged roughly 9% in the subsequent trading session after the casino operator reported its Q1 earnings results on April 17. The company disappointed investors with lower Q1 earnings due to construction disruptions in Macau. Adding to the woes, investor confidence took a hit as analysts at major firms such as JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), and Mizuho slashed their price targets on LVS stock.
On May 29, it was reported that Las Vegas Sands is considering expanding its casino space at Marina Bay Sands (MBS) in Singapore. The expansion will likely focus on increasing the current casino space rather than adding a new facility. Despite the positive news, LVS stock’s price reached a new 52-week low on May 29.
For the current fiscal year, ending in December, analysts expect LVS’s EPS to rise 39.2% year over year to $2.63. Moreover, the company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing one other occasion.
Las Vegas Sands stock has a consensus “Strong Buy” rating overall. Out of 13 analysts covering the stock, 10 advise a "Strong Buy," one suggests a "Moderate Buy," and the remaining two recommend a "Hold."
This configuration is slightly more bullish than two months before, with nine analysts advising a "Strong Buy."
Citigroup Inc. (C) maintained a “Buy” rating on Las Vegas Sands and raised the price target to $75 after the company's Q1 earnings beat due to robust gaming volumes and operational efficiency, particularly at the MBS property. Citi also favors Las Vegas Sands as a global top pick in the gaming sector.
The mean price target of $62.60 suggests a premium of 42.6% to LVS’ current price levels. The Street-high target of $76 represents an upside potential of 73.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
