KeyBanc Cuts Price Target on Las Vegas Sands (LVS) to $30

KeyBanc cuts its price target on Las Vegas Sands (NYSE: LVS) from $40 to $30 while maintaining an Underweight rating.

The firm said that following its initiation of Las Vegas Sands at Underweight on May 1, "gaming fundamentals and psychology have turned from bad to worse and LVS' shares have fully reflected that." At the same time, KeyBanc said that "in no way have the Company's fundamentals deteriorated 50% in the past two months", in its opinion, but the firm notes that group psychology surrounding gaming "have dipped to the point where we see there is further downside risk."

KeyBanc points out that even with a $30 price target on Las Vegas Sands, which is based on an enterprise value to estimated '09 cash flow of 12.5x, the stock still trades at a significant premium to its group average and in-line with its top competitor Wynn Resorts (Nasdaq: WYNN).

With shares of Las Vegas Sands trading around $38 today, the firm's price target represents potential downside of more than 20% from current levels.

Las Vegas Sands Corp. and its subsidiaries develop multi use integrated resorts worldwide.

You May Also Be Interested In

• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
• Near-term rate cut even less likely following today's data - ING
• Merck (MRK) PT Raised to $143 at Truist Securities