2023-04-12 08:29:14 ET
Roth MKM started bullish coverage of Las Vegas Sands on Wednesday, advising that Macau is poised for a comeback in 2023.
“We initiate coverage on LVS with a Buy rating and bullish outlook on Macau,” Equity analyst Edward Engel told clients. “While investors are merely focused on a full EBITDA recovery by 2024, we believe Macau is in the early innings of a multi-year growth cycle and model EBITDA recovering by YE2023 and exceeding 2019 by 10% in 2024E. We also believe Beijing is in early stages of a policy loosening cycle which historically precludes several years of Mass GGR growth and elevated Macau valuations.”
He added that the market is underestimating what he expects to be “rapid recoveries for Sands' Mid-Mass or retail exposure” as well as the upside available from the repositioning of the Londoner and Four Seasons expansion in Macau.
Engel assigned Las Vegas Sands ( NYSE: LVS ) a Buy rating and a $74 price target. Shares of Las Vegas Sands ( LVS ) rose modestly in premarket action on Wednesday.
Read more on recent trading trends amid a reopening in Macau .
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Las Vegas Sands lands Buy rating from Roth MKM