Las Vegas Sands is exploring options to sell its flagship casinos in Las Vegas, which would mark its exit from the US gambling industry, Bloomberg reported.
A representative for Las Vegas Sands (LVS) conformed to Bloomberg that the company was currently working with an adviser to look for potential buyers but nothing has been finalized. The world’s largest casino operator may fetch $6 billion or more from the Vegas properties, which includes the Sands Expo Convention Center, the Venetian Resort Las Vegas and the Palazzo.
On Oct. 21, Las Vegas Sands reported 3Q loss of $0.67 per share, wider than analysts’ expectations of $0.59 per share. 3Q revenues came in at $586 million, missing the Street consensus of $784.9 million. (See LVS stock analysis on TipRanks).
Following the results, Stifel analyst Steven Wieczynski lowered the stock’s price target to $60 (22.1% upside potential) from $64 to reflect a revised 2022 sum-of-the-parts analysis. Meanwhile, the analyst maintained a Buy rating on LVS as he expects the company’s “dominant position in the world’s most prolific gaming market” of Macau to produce sustainable, outsized long-term shareholder returns.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 4 Holds. The average price target of $56.45 implies upside potential of about 15% to current levels. Shares have declined by about 28.8% year-to-date.
Related News:
Lockheed Martin Scores Over $740M In Navy Contract Modifications
AIG Spikes 7% On Divestment Plan, New CEO; Analyst Says Buy
Alibaba Teams Up With BMW For Digital Shift