Jefferies Raises PT on Las Vegas Sands (LVS) to $52 Following Q3 Numbers; Still Cautious Over Near Term
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Price: $58.64 --0%
Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Jefferies raised its price target on Las Vegas Sands (NYSE: LVS) following third-quarter earnings from the casino and resort giant. Jefferies moved it's target from $51 to $52, while maintaining a Hold rating.
After the market closed yesterday, Sands reported earnings of 55 cents per share on revenue of $2.41 billion, beating views calling for earnings of 52 cents per share and revenue of $2.34 billion.
Jefferies is more cautious over the short-term, stating it doesn't question Sands ability to growth and generate cash flow, but there are still several overhanging issues left with Sands. Risks that Jefferies highlights in the near-term include: revenue being driven by consumers and, thus, any economic or regional issue that would negatively impact consumer sentiment, including economic conditions throughout Asia and the regulatory landscape in Macau, could significantly impact Las Vegas Sands' base...current inquiries by the SEC into Macau operations could not only impact the Macau business but could ultimately impact the licensure in other jurisdictions."
On Sands' quarterly performance, Jefferies noted that revs of $2.409 billion and adjusted EBITDA of $796.4 million beat their views calling for revs of $2.292 million and EBITDA of $780.8 million. Jefferies commented that "the quarter's results largely reflected robust VIP and mass volumes at Marina Bay Sands, as well as a continuation of strong trends in Las Vegas."
Macau properties generated upside of 9 percent in net revs for Sands. Further, "Singapore, meanwhile, posted significant gains relative to the prior year as Marina Bay Sands' operations continued to ramp (net revenues +63.1 percent to $792.4 million and EBITDA +71.3 percent to $413.9 million) on significant volume growth in both the VIP and mass segments. Finally, Las Vegas trends benefited from healthy convention and FIT business dynamics as net revenue improved 19.5 percent YoY and EBITDA gained 61.7 percent."
Following the numbers, Jefferies is revising estimates. Fiscal 2011 revs move from $2.961 billion to $3.067 billion, while EPS goes from $1.93 to $2.03. For 2012, revs move from $3.829 billion to $3.798 billion, and EPS from $2.62 to $2.58.
Click here for more analyst color on Sands, or here for a ratings history.
Sands shares are trading 3.7 percent better Friday morning.
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After the market closed yesterday, Sands reported earnings of 55 cents per share on revenue of $2.41 billion, beating views calling for earnings of 52 cents per share and revenue of $2.34 billion.
Jefferies is more cautious over the short-term, stating it doesn't question Sands ability to growth and generate cash flow, but there are still several overhanging issues left with Sands. Risks that Jefferies highlights in the near-term include: revenue being driven by consumers and, thus, any economic or regional issue that would negatively impact consumer sentiment, including economic conditions throughout Asia and the regulatory landscape in Macau, could significantly impact Las Vegas Sands' base...current inquiries by the SEC into Macau operations could not only impact the Macau business but could ultimately impact the licensure in other jurisdictions."
On Sands' quarterly performance, Jefferies noted that revs of $2.409 billion and adjusted EBITDA of $796.4 million beat their views calling for revs of $2.292 million and EBITDA of $780.8 million. Jefferies commented that "the quarter's results largely reflected robust VIP and mass volumes at Marina Bay Sands, as well as a continuation of strong trends in Las Vegas."
Macau properties generated upside of 9 percent in net revs for Sands. Further, "Singapore, meanwhile, posted significant gains relative to the prior year as Marina Bay Sands' operations continued to ramp (net revenues +63.1 percent to $792.4 million and EBITDA +71.3 percent to $413.9 million) on significant volume growth in both the VIP and mass segments. Finally, Las Vegas trends benefited from healthy convention and FIT business dynamics as net revenue improved 19.5 percent YoY and EBITDA gained 61.7 percent."
Following the numbers, Jefferies is revising estimates. Fiscal 2011 revs move from $2.961 billion to $3.067 billion, while EPS goes from $1.93 to $2.03. For 2012, revs move from $3.829 billion to $3.798 billion, and EPS from $2.62 to $2.58.
Click here for more analyst color on Sands, or here for a ratings history.
Sands shares are trading 3.7 percent better Friday morning.
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*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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