Macau casinos prep for strong Chinese New Year traffic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2025
0mins
Should l Buy LVS?
Source: SeekingAlpha
Chinese New Year 2025 and Macau's Casino Impact: The Chinese New Year on January 29, 2025, marks the Year of the Snake, with an 8-day holiday period crucial for Macau's casinos, which expect increased revenue and tourism from Mainland China. Analysts report positive trends, with luxury hotels already sold out for part of the holiday.
Market Performance and Stock Insights: Last year's strong tourist data led to a surge in Macau casino operator shares, while concerns remain regarding leverage and capital expenditures for companies like Melco Resorts, amidst ongoing developments such as Las Vegas Sands' stock valuation adjustments and expansion plans into Thailand.
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Analyst Views on LVS
Wall Street analysts forecast LVS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LVS is 69.12 USD with a low forecast of 56.89 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 56.940
Low
56.89
Averages
69.12
High
80.00
Current: 56.940
Low
56.89
Averages
69.12
High
80.00
About LVS
Las Vegas Sands Corp. is a global developer and operator of destination properties (Integrated Resorts). The Integrated Resorts feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants and other amenities. Its properties also cater to high-end players by providing them with luxury amenities and premium service levels. Its other amenities include luxury accommodations, restaurants, lounges, invitation-only clubs and private gaming salons. Its principal operating and developmental activities occur in two geographic areas: Macao and Singapore. In Macao, it owns The Venetian Macao Resort Hotel; The Londoner Macao; The Parisian Macao; The Plaza Macao and Four Seasons Macao, and Sands Macao. In Singapore, it owns Marina Bay Sands. It also has ferry operations. It owns and operates a collection of Integrated Resorts in the Macao Special Administrative Region of the People's Republic of China (PRC) through Sands China Ltd.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Improvement: The company's net income rose 14% to $395 million under GAAP, with adjusted earnings per share increasing from $0.54 to $0.85, indicating enhanced profitability.
- Weak EBITDA Performance: Despite revenue growth, the adjusted EBITDA from its Macao resorts was $608 million, only a 6% increase year-over-year, significantly lower than the $806 million generated by Marina Bay Sands, raising investor alarms.
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- Options Market Signals: Even with the stock's decline, smart money is paying a premium for upside options, indicating that market participants remain optimistic about a potential rebound, as both ITM and OTM calls reflect varying degrees of upside optionality.
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