Here's How Las Vegas Sands' Q1 Performance Refutes Morgan Stanley Analyst's Bear Case - Las Vegas Sands (NYSE:LVS)

Morgan Stanley analyst Stephen W Grambling reiterated an Overweight rating on the shares of Las Vegas Sands Corp (NYSE: LVS) and raised the price target from $64 to $69.
Las Vegas Sands Q1 results beat consensus expectations handily driven by better-than-expected Macau results.
In contrast to expectations for LVS to be a laggard in the Macau recovery, the company's investments through the pandemic appear to have attracted more of the premium customer, said the analyst.
The analyst added that this has driven share gain for the company in premium mass.
The analyst feels the evidence of sequential improvement in visitation and GGR throughout the quarter points to positive trends in May Golden Week.
The analyst estimates that the mix shift between VIP/mass versus 2019 levels alone could drive 400 basis points of margin expansion.
The analyst is also impressed by LVS' ability to find efficiencies even as rooms were out of service, which could contribute to additional flow-through.
The analyst said although the beat was more modest in Singapore, the market has yet to see material inbound airlift from China.
The analyst has raised the FY23 revenue estimate to $10.3 billion to reflect a faster recovery and higher share.
Also Read: Las Vegas Sands Gets Price Target Bumps By Analysts Following Upbeat Q1 Results
Price Action: LVS shares are trading higher by 4.45% at $62.00 on the last check Thursday.
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