Las Vegas Sands (LVS) PT Lowered to $61 at Citi, But Says Correction Overdone

Citi analyst George Choi lowered the price target on Las Vegas Sands (NYSE: LVS) to $61.00 (from $80.00) while maintaining a Buy rating, saying the recent share price correction is overdone.

The analyst commented, "In our opinion, the proposed revisions to the Macau Gaming Law are reasonable and not punitive. Given the importance of the Gaming industry to Macau, and with the industry’s stability being the #1 priority for the Macau government, we remain confident that the six casino operators will still be able to generate decent profits in
the long-run, so long as they remain fully compliant with the new Gaming Law. In this report, we examine each of investors’ major concerns in Macau Gaming arising from the consultation document (and reflect the legitimate ones in our revised target multiples when deriving TPs), and we opine that the recent share price correction is overdone. We also lower our FY21-22E GGR forecasts to reflect the latest trends. Our revised TPs still imply 16-65% upside potential from the current levels, and we believe risk-reward looks favorable, especially for LT investors."

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