Citi Reiterates a 'Sell' on Las Vegas Sands (LVS); Stock Overvalued Versus Sum-of-its-Parts

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LVS Hot Sheet

Rating Summary:
14 Buy, 4 Hold, 0 Sell

Rating Trend: Down

Down

Today's Overall Ratings:
Up: 13 | Down: 8 | New: 20

Citi reiterates a 'Sell' rating on Las Vegas Sands (NYSE: LVS), raises PT by $1 to $23.

Citi analyst highlighted points include: 1) August Macau Channel Checks - gross
gaming revenue rose 40% YoY to MOP15.8bn...Although less impressive than July’s MOP16.3bn, up 70% YoY, August was still the third-largest month on record; 2) Table Games Legalized in PA - Although PA represents only ~5% of LVS’ 2010E total revenue, total slot and table revenue was +33% YoY to US$26m during August; and 3) According to our Citi Las Vegas Room Rate Survey, August four-week moving average rates improved +38% YoY (However Aug '09 room rate was one of the lowest on record).

More on Citi Las Vegas Room Rate Survey - Convention growth and increased business travel are helping to push midweek rates up. Weekend rates also grew, but at a much lower pace. "We look to see consistent growth across all rates to feel more positive on Las Vegas, which we anticipate in 1H11."

FY10 EPS estimate increased from $0.58 to $0.65 and FY11 from $0.78 to $0.86 based on channel checks pointing to continuing gaming revenue growth in Macau.
To see all the upgrades/downgrades on shares of LVS, visit our Analyst Ratings page.

Shares are trading at $30.80, up $0.73 (+2.43%) this morning.

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