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Analysts at Imperial Capital see the recent sell-off of Las Vegas Sands Corp creating a buying opportunity for investors.
They rate the stock as “Outperform” and forecast the share price reaching as high as $62. It currently sat at $51.38.
“The LVS shares are currently trading at an 11.7x TEV multiple based on our estimated consolidated 2013 results, which is down from 13.2x at the beginning of June,” Imperial Capital analyst Gregg Klein notes. “The shares have traded off over the past week due to fears that the economy in China is slowing down and that VIP junket play could decline due to tighter credit market conditions on the mainland. We think this sell-off creates a buying opportunity, which supports our Outperform rating and $62 price target on the LVS shares.”
Las Vegas Sands and Wynn are seen by many experts as vulnerable in the wake of China’s slowdown. Both casino giants have exposure in the gambling Mecca of Macau, the former Portuguese colony now ruled by China.
- Aaron Goldstein, Gambling911.com
