UPDATE: ISI Group Upgrades Las Vegas Sands to Buy Following China Trip
In a report published Tuesday, ISI Group analyst Ian Weissman upgraded the rating on Las Vegas Sands Corp. (NYSE: LVS) from Neutral to Buy, and raised the price target from $52.00 to $60.00.
In the report, ISI Group noted, “The company has better prospects for organic growth between now and 2016 (when significant new Cotai supply is set to come on-line) vs. its competitors because of the mass market-centered ramp-up at Sands Cotai Central. Additionally, our price target does not account for other potential catalysts, including: 1) a levered recap of some sort (net debt-to-EBITDA is only ~1.5x on 2013E); 2) dividend increases and/or special dividends; 3) share buybacks (though it's likely that the company has been buying stock in the low 50's over the past couple of weeks; a $2.0bn buyback program was authorized on June 5, when shares closed at $57.35); or 4) a spin-out of the retail segment at Marina Bay Sands (we estimate that a 100% spinout at a 4-5% NOI cap rate equates to $5-7/sh of incremental value versus our current price target).”
Las Vegas Sands Corp. closed on Monday at $53.18.
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