Thursday, January 8, 2015

Las Vegas Sands (LVS) Stock Price Target Cut Today at Deutsche Bank

NEW YORK (TheStreet) --Analysts at Deutsche Bank lowered their price target on Las Vegas Sands Corp. to $53 from $65 on Thursday morning. The firm said it reduced its numbers on the casino operator as it believes the company will continue to struggle in the Chinese gambling district in Macau. "Among the companies we cover with Macau exposure, we continue to see Las Vegas Sands as the most challenged over the near term," Deutsch Bank said. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The firm feels that Las Vegas Sands' "top line market ambiguity coupled with a highly likely share loss," its "difficult Macau VIP hold comparisons in 2015," its more "aggressive" competitors, and expected margin pressure all lead to the price target cut. The firm maintains its "hold" rating on the company. Shares of Las Vegas Sands are higher by 1.90% to $56.17 at the start of trading on Thursday. Separately, TheStreet Ratings team rates LAS VEGAS SANDS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate LAS VEGAS SANDS CORP (LVS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: LAS VEGAS SANDS CORP has improved earnings per share by 9.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $2.79 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $2.79). 46.68% is the gross profit margin for LAS VEGAS SANDS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.01% is above that of the industry average. Net operating cash flow has slightly increased to $1,226.65 million or 7.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.15%. Even though the current debt-to-equity ratio is 1.38, it is still below the industry average, suggesting that this level of debt is acceptable within the Hotels, Restaurants & Leisure industry. Despite the fact that LVS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.78 is high and demonstrates strong liquidity. Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, LAS VEGAS SANDS CORP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500. You can view the full analysis from the report here: LVS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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