2023-07-14 10:55:03 ET
Las Vegas Sands ( NYSE: LVS ) was named the top pick in the gaming sector by Morgan Stanley on Friday. The bullish call came just ahead of Las Vegas Sands' earnings report next week.
Analyst Stephen Grambling and team call Las Vegas Sands ( LVS ) the best way to play the Macau casinos sector and one of the final consumer recovery stories coming out of COVID.
"LVS historically has catered primarily to the mass market leader with ~25% market share pre-covid and expect that share to improve over time as it invested $2B across two Macau properties during the pandemic. LVS’s other major property in Singapore continues to generate positive trends while also boasting a pristine balance sheet (<1x 2024 Net Debt/EBITDA) and ~$6.5B of cash at the end of 1Q23."
Looking ahead, Morgan Stanley also expects potential near-term catalysts for LVS in the form of a dividend resumption or buyback announcement, along with a potential downstate New York casino license. The firm has an Overweight rating on LVS and price target of $71
Eyes on New York: Las Vegas Sands ( LVS ) is considered a favorite by some industry experts to land one of the downstate gaming licenses in New York. Earlier in the year, LVS entered into partnerships to purchase the long-term lease of a site in Nassau County, New York, which is currently occupied by the Nassau Veterans Memorial Coliseum. The site would provide close access to Manhattan and the two major airports on Long Island.
Shares of Las Vegas Sands ( LVS ) moved up 0.50% in Friday morning trading to $60.43 vs. the 52-week trading range of $33.38 to $65.58.
More on Las Vegas Sands:
- Las Vegas Sands: Means Betting On Asia
- More articles from Seeking Alpha analysts
- Las Vegas Sands compared to sector peers
- Seeking Alpha's Quant Rating for Las Vegas Sands
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Las Vegas Sands is the top gaming pick at Morgan Stanley