Goldman Sachs Suggests Buying Calls on Las Vegas Sands
September 08, 2011 9:21 AM
Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Las Vegas Sands (NYSE: LVS) ahead of what it thought to be a bullish analyst day.
GS Gaming and Lodging analysts Steve Kent and Afua Ahwoi recently raised LVS shares to Buy and see 8% potential upside to their 12-month price target of $52.
Over 90% of LVS profits come from Asia, the fastest growing gaming region in the world, yet shares are trading at 11X earnings, inline with US exposed cyclical consumer stocks. They believe that LVS's growth trajectory will increasingly stand out and ultimately receive a premium valuation when compared to its closest competitors as well as much of the rest of hospitality and consumer stocks.
The analysts suggest buying the October $47 call for $3.65.
Las Vegas Sands Corp. owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino and The Sands Expo and Convention Center in Las Vegas, Nevada, and the Sands Macao, The Venetian Macao Resort Hotel, the Four Seasons Hotel Macao, Cotai Strip and the Plaza Casino in the Macau Special Administrative Region of the People's Republic of China.
