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- Morgan Stanley analyst Stephen W Grambling reiterated an Overweight rating on the shares of Las Vegas Sands Corp (NYSE: LVS) and raised the price target from $64 to $69.
- Las Vegas Sands Q1 results beat consensus expectations handily driven by better-than-expected Macau results.
- In contrast to expectations for LVS to be a laggard in the Macau recovery, the company’s investments through the pandemic appear to have attracted more of the premium customer, said the analyst.
- The analyst added that this has driven share gain for the company in premium mass.
- The analyst feels the evidence of sequential improvement in visitation and GGR throughout the quarter points to positive trends in May Golden Week.
- The analyst estimates that the mix shift between VIP/mass versus 2019 levels alone could drive 400 basis points of margin expansion.
- The analyst is also impressed by LVS’ ability to find efficiencies even as rooms were out of service, which could contribute to additional flow-through.
- The analyst said although the beat was more modest in Singapore, the market has yet to see material inbound airlift from China.
- The analyst has raised the FY23 revenue estimate to $10.3 billion to reflect a faster recovery and higher share.
- Also Read: Las Vegas Sands Gets Price Target Bumps By Analysts Following Upbeat Q1 Results
- Price Action: LVS shares are trading higher by 4.45% at $62.00 on the last check Thursday.
- Photo Via Company
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