Stifel analyst Steven Wieczynski has revised the price target for Las Vegas Sands (LVS, Financial), bringing it down to $57 from a previous $64 while maintaining a Buy rating on the shares. The revision comes in response to a recent decline in the stock's value, which the firm views as an enticing opportunity despite the current uncertainties.
Key factors influencing this adjustment include significant geopolitical and macroeconomic risks tied to China and Macau, which are difficult to forecast. In light of these challenges, the analyst has made substantial reductions in both short-term and long-term forecasts for Las Vegas Sands. This conservative approach aims to account for a challenging economic environment in China and a slower-than-expected market share growth for the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Las Vegas Sands Corp (LVS, Financial) is $54.01 with a high estimate of $62.00 and a low estimate of $45.00. The average target implies an upside of 57.09% from the current price of $34.38. More detailed estimate data can be found on the Las Vegas Sands Corp (LVS) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Las Vegas Sands Corp's (LVS, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Las Vegas Sands Corp (LVS, Financial) in one year is $104.13, suggesting a upside of 202.88% from the current price of $34.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Las Vegas Sands Corp (LVS) Summary page.
LVS Key Business Developments
Release Date: April 23, 2025
- Macao EBITDA: $535 million for the quarter.
- Singapore Adjusted Property EBITDA: $605 million, a record quarter.
- Mass Gaming Revenue in Singapore: $778 million, 73% growth from Q1 2019 and 13% growth from the previous quarter.
- Macao EBITDA Margin: 31.6%, down 280 basis points from Q1 2024.
- Venetian Margin: 35.3%.
- Plaza and Four Seasons Margin: 35.6%.
- Singapore EBITDA Margin: 52%.
- Share Repurchase: $450 million of LVS stock repurchased during the quarter.
- Quarterly Dividend: $0.25 per share.
- Share Repurchase Authorization: Increased to $2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Las Vegas Sands Corp (LVS, Financial) reported a record quarter in Singapore with $605 million of adjusted property EBITDA, marking an extraordinary achievement.
- The company completed the refurbishment of the Londoner Grand, adding 2,405 rooms and suites, which is expected to drive revenue and cash flow growth.
- LVS repurchased $450 million of its stock during the quarter and paid a recurring quarterly dividend of $0.25 per share, indicating strong shareholder returns.
- The company has increased its share repurchase authorization to $2 billion, reflecting confidence in its financial position and future prospects.
- LVS's investment in non-gaming amenities and high-value tourism in Singapore has shown significant positive impacts, with mass gaming revenue reflecting substantial growth.
Negative Points
- Macao's EBITDA margin for the portfolio of properties decreased by 280 basis points compared to the first quarter of 2024.
- The company faced challenges in the Macao market with a decline in non-rolling revenues, particularly in the premium mass segment.
- LVS decided not to bid for a casino license in New York due to concerns about the impact of potential legalization of iGaming on market opportunity and project returns.
- The competitive environment in Macao has intensified, making it more challenging to leverage current gameplay types and player segments.
- Operating expenses in Macao increased by approximately 7%, contributing to negative operating leverage due to revenue declines in key segments.
