Deutsche Bank Analyst Reassesses Q4 Predictions for Las Vegas Sands

Las Vegas Sands, a well-known hospitality and gaming company, announced in February 2022 that it was undertaking a major renovation at Marina Bay Sands. This week, the company began the second phase of the project, which involved a $750 million reinvestment. At the same time, Las Vegas Sands saw an increase in its share price target.

Carlo Santarelli, an analyst for Deutsche Bank, raised his price share target for the company from $65 to $66 per share and maintained a “buy” rating for the company. He expressed optimism about Sands’ shares, stating that the company is expected to continue growing in Macau and the US.

Santarelli explained, “We remain firm in our view of the favorable risk-reward in LVS shares at current levels and we believe continued strength and sequential growth in Macau, as well as the differentiation of the Macau gaming environment, relative to US gaming markets, will drive share outperformance in 2024.”

However, despite the increase in the stock price target, the analyst revised Las Vegas Sands’ projections for the fourth quarter of 2023 for Macau. He projected cash for the fourth quarter of 2023 to decrease to $611 million, $67 million less than the initial estimate of $678 million.

The reevaluation of the projected cash was necessary due to the weak market share for Sands in Macau during November. Santarelli stated that the company typically holds about 25.5% share within the gambling sector in Macau. The reduced figure comes as a result of increased commissions for junket operators who cater to VIP customers and increased expenses for promotional spending.

Overall, Las Vegas Sands’ ongoing revamp at Marina Bay Sands, along with the positive outlook for its shares, indicates a period of growth and development for the company in the near future.