Why These 2 Analysts Are Bullish On Las Vegas Sands Despite Huge Q2 Loss

Zinger Key Points
  • According to Wells Fargo analyst Daniel Politzer, Las Vegas Sands faces “attractive momentum in Singapore."
  • Credit Suisse analyst Benjamin Chaiken says Las Vegas Sands has held up well and should continue to outperform.

Las Vegas Sands Corp. LVS reported a 10.3% decline in revenues to $1.05 billion for the second quarter. The company’s loss widened to $290 million, or 38 cents per share, from $192 million, or 25 cents per share, in the same quarter last year, and came in much higher than the consensus estimate of a loss of 29 cents per share.

Wells Fargo On Las Vegas Sands

Analyst Daniel Politzer upgraded the rating for Las Vegas Sands from Equal Weight to Overweight, while raising the price target from $43 to $45.

The company faces “attractive momentum in Singapore, where 2Q mass table/slot GGR has quickly reached 90%+ of '19 levels despite visitation/airlift still at/below 50% of '19,” analyst Politzer said in the upgrade note.

“Macau expectations can’t get much worse, with no realistic line of sight to COVID zero/travel restrictions being eased (best case, year-end?),” he added.

Check out other analyst stock ratings.

Credit Suisse On Las Vegas Sands

Analyst Benjamin Chaiken maintained an Outperform rating and a price target of $59.

“LVS reported total EBITDA of $209m, vs. our $197m and street $150m,” Chaiken said in a separate note. “The standout performance was in Singapore, which generated $319m of EBITDA vs our $225m,” he added.

“LVS has held up well YTD and we think it should continue to outperform,” the Credit Suisse analyst wrote. “Singapore is accelerating, Macau can't get much work, the balance sheet is in great shape, and the Singapore rebound could provide insight into what an eventual Macau recovery could look like,” he further mentioned.

LVS Price Action: Shares of Las Vegas Sands had risen by 6.77% to $39.59 at the time of publication Thursday.

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Posted In: Analyst ColorEarningsGamingNewsUpgradesPrice TargetReiterationGlobalTop StoriesAnalyst RatingsMoversTrading IdeasGeneralBenjamin ChaikenCredit SuisseDaniel PolitzerWells Fargo
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