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UPDATE: Craig-Hallum Downgrades Las Vegas Sands

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In a report published Friday, Craig-Hallum Capital Group LLC analyst Bryan Maher downgraded Las Vegan Sands Corp. (NYSE: LVS) from Buy to Hold and raised the PT from $62 to $71.

Maher noted that Macau properties led the company's earning growth in 3Q2013. Craig-Hallum reported gross gaming revenue of +41.9% at the Four Seasons Plaza Macao and +132.6% at the Sands Cotai Central. The analyst commented on rolling chip and non-rolling chip volume improvement of 16.9% and 2.2% y/y, respectively. "We attribute this to the Singapore government's goal of keeping local gaming play at manageable (low) levels. In light of this, LVS has ramped up its marketing to foreigners throughout the Asia region, which has had a slight negative impact on margins."

Craig-Hallum suggested that table game drop of 6.4% in Las Vegas is due to the city's slow recovery market and individuals preference of spending their money and food and beverage. The analyst noted that though the Sands Bethlehem property is maturing, rumors continue to circulate that LVS is considering to sell this property. Maher estimated that this sale could fetch $1.1-1.2B.

Craig-Hallum remains consistent with other analysts raising the PT, although the company remains conservative compared to Stifel's new PT of $84.

Las Vegas Sands reported a quarterly dividend increase from $0.35 to $0.50 per share yesterday. Las Vegas Sands closed at $70.97 on Thursday and is currently trading +2.01% with the opening bell.

 

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Posted-In: Bryan Maher Craih-Hallum Capital Group LLC StifelAnalyst Color Downgrades Analyst Ratings

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