Nomura Securities Maintains a 'Buy' on Las Vegas Sands (LVS); Cautious on Possible Spain Expansion

June 28, 2012 11:41 AM EDT
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Nomura Securities maintains a 'Buy' on Las Vegas Sands (NYSE: LVS) price target of $58.00.

Analyst, Harry Curtis, said he isn't a fan of Las Vegas Sands expanding into Spain. The company recently announced it was looking to build in either Madrid or Barcelona. But, the main factor is financing. LVS said it would use $2-3 billion of its own funds, but needs to borrow another $6-8 billion...just for the first phase. In all, LVS is looking to spend about $35 billion over the next nine years.

Curtis reports that Las Vegas Sands' COO is in Spain this week, but just announced he would push back a decision on location until September. That isn't much time, considering what needs to be accomplished. First, financing, with Europe in crisis, no financial institutions are lending, so LVS is looking to firms in China and the U.S. Second, LVS is requesting that Spain pass laws revolving around anti-money laundering and anti-smoking, plus a 10-year moratorium on gaming taxes.

Curtis concluded by saying the Las Vegas Sand's COO comment "No Financing Means No Project" is a blessing in disguise to LVS investors.

For an analyst ratings summary and ratings history on Las Vegas Sands click here. For more ratings news on Las Vegas Sands click here.

Shares of Las Vegas Sands closed at $42.87 yesterday.

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