Las Vegas Sands Grows Continuously; Analysts Optimistic

Las Vegas Sands (LVS) has just marked a slight decline on the New York Stock Exchange. According to the past Tuesday results, the company’s stocks hit $53,77 value which is 2% lower than on this past Friday when they stood at $55,85. The casino provider continues to record a declining trend and estimations say that Las Vegas Sands collapsed about 6% from the beginning of the April. However, negative trends didn’t become problematic for the company and analysts have positive expectations for the future.

Recent Issues

Macau city had a very difficult period recently. For several months now, the region has recorded a lower gaming income compared to the same period last year. Macau’s gambling regulator has just mentioned that gross gaming revenue reached $3,01 billion level which is slightly lower than a year ago.

According to the opinion of Stifel Investment Banking analyst, there is no cause for concern. Steven Wieczynski shared his thoughts:

“Given our expectation for continued outsized growth within Macau’s mass market gaming segment, we continue to favor exposure to Macau’s most dominant mass market player, LVS.”

LVS holds five casinos in Macau and still looks for the acquisition of new markets. Despite present dissatisfaction, the company officers still have positive expectations about the future. LVS depends on Macau revenues which notably affect the company. As a result, it suffered from U.S – China trade war, Hong Kong protests and rising competition in the gambling sector.

Wieczynski is still optimistic about the future. He said:

“Although we expect lingering Chinese macroeconomic uncertainty to elevate trading volatility in the near-term, we see nothing out there at this point capable of tempering our long-term enthusiasm on the name.”

He added:

“We believe LVS’ unrivaled scale and investments for the future position its Macau business to remain a leader in the world’s premiere gaming market for the foreseeable future. Additionally, the company’s impeccable balance sheet not only adds a level of safety and security to the story but also favorably positions the company to successfully pursue any global integrated resort development opportunities of the size that come along in the future, in our view.”

We can only wait to see if Wieczynski made correct predictions. The industry analysts believe in the same outcome and see the company stronger than ever before.

Source:

“Analysts still see Las Vegas Sands as a long-term favorite”, Erik Gibbs, calvinayre.com, September 4, 2019.