CFRA Downgrades Las Vegas Sands (LVS) to Hold

CFRA analyst Zachary Warring downgraded Las Vegas Sands (NYSE: LVS) from Buy to Hold with a price target of $51.00 (from $55.00).

The analyst comments "We lower our 12-month price target by $4 to $51, based on 11.0x our 2025 EBITDA estimate, in between the company's one- and two-year average forward EV/EBITDA multiple. This reflects our view that the company is deserving of an above-peer multiple due to above-peer margins and growth in recent years. However, we believe the run-up in shares since the announcement of stimulus in China has skewed the risk-reward back to even. Shares currently trade at 10.5x forward EBITDA estimates, which we see as warranted, but also above peers. We also cite LVS's overreliance on Macao and Asia, which could lead to underperformance if growth in the region remains muted. Shares have enjoyed a +30% move in less than a month and we believe investors have priced in a significant recovery to the Chinese economy. We move to Hold and prefer other names in the space that have more diverse geographical property portfolios, not just Macao and Singapore, as with LVS."

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 $53.33 yesterday.

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