Mizuho Securities has updated its outlook on Las Vegas Sands Corp (NYSE: NYSE:LVS), increasing the price target to $57.00 from the previous $52.00, while reaffirming the Outperform rating on the stock.
The adjustment follows the company's earnings report, which revealed hold-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for its Macau operations.
Las Vegas Sands reported hold-adjusted EBITDA in Macau at $583 million, excluding Ferry operations, surpassing the Street's expectation of $565 million.
Analysts had anticipated that the performance bar was around $560 million, suggesting the results should be satisfactory to investors. Conversely, the company's Singapore operations yielded a hold-adjusted EBITDA of $484 million, which was slightly below the Street's forecast of $494 million. Despite this, the figure was close to what analysts believed was the likely threshold of $500 million.
The report noted that the Singapore results might come as a surprise to some, considering that several rooms were out of service and the year-over-year comparison was challenging. However, Mizuho anticipates an improvement in the fourth quarter as rooms are expected to become available again at the Marina Bay Sands (MBS) resort.
In other recent news, Las Vegas Sands Corp. experienced robust growth in its Macao and Singapore markets during the third quarter of 2024. Financial firm Stifel raised the price target on Las Vegas Sands Corp. from $55 to $64, maintaining a Buy rating. This adjustment comes in light of several upcoming catalysts expected to boost the company's share value.
Las Vegas Sands' total gaming revenue in Macao rose 13% year-over-year, with mass gaming revenue up by 14%. CEO Rob Goldstein projected that Macao's gross gaming revenues will surpass $30 billion by 2025. The recent opening of the Londoner Grand Casino and the ongoing $1.75 billion refurbishment at Marina Bay Sands in Singapore are anticipated to further enhance the company's prospects.
Despite renovation disruptions, Macao's EBITDA reached $585 million, while Marina Bay Sands posted an EBITDA of $406 million. Additionally, Las Vegas Sands Corp. announced a repurchase of $450 million in stock and an increase in its annual dividend to $1 per share for 2025.
InvestingPro Insights
Las Vegas Sands Corp's recent performance aligns with several key metrics and insights from InvestingPro. The company's impressive gross profit margins, as highlighted by InvestingPro Tips, are reflected in the latest data showing a gross profit margin of 76.91% for the last twelve months as of Q2 2024. This robust profitability supports Mizuho's positive outlook on the stock.
InvestingPro Data also reveals a strong revenue growth of 68.48% over the same period, which corroborates the company's solid performance in Macau and Singapore operations mentioned in the article. The EBITDA growth of 137.26% further underscores the company's financial strength and operational efficiency.
An InvestingPro Tip notes that LVS operates with a moderate level of debt, which could be advantageous as the company continues to invest in its properties and capitalize on market opportunities. Additionally, the strong returns over the last month (15.01%) and three months (27.26%) align with Mizuho's increased price target and positive outlook.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Las Vegas Sands, providing deeper insights into the company's financial health and market position.
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