Low $40s Are Good Entry Point For Las Vegas Sands Shares, JPMorgan Says In Upgrade

Shares of Las Vegas Sands Corp. LVS have underperformed an underperforming sector and seem attractive in the low $40s range, according to JPMorgan.

The Las Vegas Sands Analyst

Joseph Greff upgraded Las Vegas Sands from Neutral to Overweight and set a $52 price target. 

The Las Vegas Sands Thesis

Las Vegas Sands stock has declined by 15% in recent days and is down 41% year-to-date, presenting a good entry point, Greff said in the Thursday upgrade note. (See his track record here.)

The travel restrictions that are preventing any recovery in visitations and revenue should be eased in the next couple of months, he said. 

The monthly gross gaming revenue, which has shown horrific year-on-year declines of around 95%, will also “begin to improve from here,” Greff said. 

Las Vegas Sands’ liquidity position is better than that of its peers, allowing the company to weather periods of no revenue, the analyst said.

The company can go a year-and-a-half in this bleak revenue environment, even after factoring in project capital expenditures in both Macau and Singapore, he said. 

Given the low investor expectations, sentiment is likely to improve going forward, according to JPMorgan. 

LVS Price Action

Las Vegas Sands stock was up 11.54% at $45.71 at the time of publication. 

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