January 19, 2024 2 min read

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Deutsche Bank Analyst Reevaluates Q4 Projections for Las Vegas Sands

A new report reveals that the analyst increased his price share target for the company but decreased the cash expectation for Sands' Macau operations

Las Vegas Sands, the globally recognized hospitality and gaming company, confirmed the launch of a massive revamp at Marina Bay Sands back in February 2022. Earlier this week, the second phase of the project was initiated which involved a $750 million reinvestment. Again, this week, Las Vegas Sands’ share price target marked an increase.

Carlo Santarelli, an analyst for Deutsche Bank, increased his price share target for the company by $1 from $65 to $66 per share. Additionally, he reaffirmed the “buy” rating for the company, as announced by CDC Gaming Reports. Santarelli was bullish about Sands’ shares, predicting that the company is likely to continue growing in Macau, something that is observed across the US as well.

The Deutsche Bank analyst 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.”

Cash Projections for the Company’s Macau Operations Dipped

Despite the increase in the stock price target, the analyst reevaluated Las Vegas Sands’ projections for the fourth quarter of 2023 for Macau. He explained that the company is expected to report its Q4 2023 results next week, possibly after the market closes on January 24. Santarelli’s projected cash for the fourth quarter of 2023 decreased to $611 million. This marked a figure that was $67 million less than the initial estimate of $678 million.

According to the analyst, the reevaluation of the projected cash was necessary due to the weak market share for Sands in Macau during November. He revealed that the company usually holds approximately 25.5% share within the gambling sector in Macau. Finally, Santarelli said that the reduced figure comes amid increased commissions for junket operators who helped with VIP customers as well as more discounts and increased expenses for promotional spending.

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