Las Vegas Sands (LVS) Gets Top Billing at JPMorgan
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Price: $46.23 +1.01%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Shares of Las Vegas Sands Corp. (NYSE: LVS) are strong Monday after JP Morgan placed the stock on its U.S. Equity Analyst Focus List. Shares of the casino operator last traded at $44.52, up 2.2 percent.
JPMorgan analyst Joseph Greff said Las Vegas Sands' growth prospects are "superior to anything else in our coverage universe, given its strong positioning in the growth markets of Macau and Singapore, and with a valuation of ~18x 2012E EPS and ~12x 2012E EV/EBITDA and a YTD performance of -5% (versus -6% for the S&P), we think the risk-reward is favorable."
Given attractive same-store growth in Macau and Singapore, Greff is forecasting 29% EBITDA CAGR and 40% EPS CAGR from 2010 to 2013.
He sees addition upside as the firm is not run rating 2Q11 VIP volumes to account for seasonality and conservatism. In addition, 2011-2013 estimates for Singapore do not assume junkets will be allowed, which could drive incremental market-wide revenue growth. Also, the firm has not forecasted any specific lift from LVS;'s efforts in Macau to do more business with junkets, though it is committed to spending $125 million to build out new junket VIP rooms at Four Seasons and Venetian, and they believe the EBITDA opportunity is $200 million. Lastly, the firm has conservatively modeled $300 million of Sites 5&6 EBITDA in 2012 and $475 million in 2013, which they view as having upside on margins and mass market positioning in Cotai.
"In short, we view our new estimates as being conservatively driven, leaving the
door open to future positive estimate revision in both Singapore and Macau," Greff summed up.
The firm is reaffirming their Overweight rating and $58 price target.
For more ratings news on Las Vegas Sands click here and for the rating history of Las Vegas Sands click here.
Shares of Las Vegas Sands closed at $43.59 yesterday.
JPMorgan analyst Joseph Greff said Las Vegas Sands' growth prospects are "superior to anything else in our coverage universe, given its strong positioning in the growth markets of Macau and Singapore, and with a valuation of ~18x 2012E EPS and ~12x 2012E EV/EBITDA and a YTD performance of -5% (versus -6% for the S&P), we think the risk-reward is favorable."
Given attractive same-store growth in Macau and Singapore, Greff is forecasting 29% EBITDA CAGR and 40% EPS CAGR from 2010 to 2013.
He sees addition upside as the firm is not run rating 2Q11 VIP volumes to account for seasonality and conservatism. In addition, 2011-2013 estimates for Singapore do not assume junkets will be allowed, which could drive incremental market-wide revenue growth. Also, the firm has not forecasted any specific lift from LVS;'s efforts in Macau to do more business with junkets, though it is committed to spending $125 million to build out new junket VIP rooms at Four Seasons and Venetian, and they believe the EBITDA opportunity is $200 million. Lastly, the firm has conservatively modeled $300 million of Sites 5&6 EBITDA in 2012 and $475 million in 2013, which they view as having upside on margins and mass market positioning in Cotai.
"In short, we view our new estimates as being conservatively driven, leaving the
door open to future positive estimate revision in both Singapore and Macau," Greff summed up.
The firm is reaffirming their Overweight rating and $58 price target.
For more ratings news on Las Vegas Sands click here and for the rating history of Las Vegas Sands click here.
Shares of Las Vegas Sands closed at $43.59 yesterday.
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