Bank of America turned more constructive on Las Vegas Sands ( NYSE: LVS ) with an upgrade to a Neutral rating from Underperform.
Analyst Shaun Kelley and team said uncertainty around Macau is still high, but they believe risk around both the Macau concession and an eventual COVID reopening are lower than at the time of the firm's downgrade ten months ago.
"LVS is a low beta, low leverage stock that is less correlated with US macro and rates, with substantial positive estimate revision potential should a reopening occur."
BofA see valuation as mixed on LVS with the stock trading at about 10X fully recovered EBITDA well below long-term averages of about 13X.
Risks for Las Vegas Sands ( LVS ) that keep BofA from being more bullish include further COVID crackdowns, geopolitics and US-China tension, slowing China macro data and capex plans from the casino operator that could limit near-term capital returns.
Shares of LVS rose 0.40% in premarket trading on Thursday.
The Seeking Alpha Quant Rating on LVS is at Hold.
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Las Vegas Sands is lifted by BofA off a bear rating