UPDATE: ISI Group Upgrades Las Vegas Sands Corp. to Buy, Raises PT Following China Trip

In a report published Tuesday, ISI Group analyst Ian Weissman upgraded the rating on

from Neutral to Buy, and raised the price target from $52.00 to $60.00. In the report, ISI Group noted, “Although our new LVS price target implies (only) 16% upside, we especially like it here because of a) attractive valuation and b) other potential catalysts not included in our analysis. LVS's forward 12-month EV/EBITDA multiple has contracted by approximately 1.0x since the end of 1Q, so valuation looks attractive here. 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.