Goldman Sachs believes continued strong performance from Asian clients will continue to boost Las Vegas Sands’ stock price. The bank upgraded the casino operator from neutral to buyout. Analyst Lizzie Dove also raised her stock price estimate from $64 to $80, suggesting a 23% upside. Dove cited “sustained” acceleration in Macau’s gross gaming revenue. This is supported by a busy event schedule, the appreciation of the Chinese yuan, relaxed visa restrictions for residents of China’s neighboring regions, increased tourism interest in Macau, and a rise in the Chinese stock market. LVS YTD Mountain LVS YTD Chart “Following comments from outgoing LVS CEO Rob Goldstein earlier this year that LVS should be more aggressive in offering direct customer incentives as the market shows signs of sustained growth, LVS has increased promotions and adjusted reinvestment rates for high-end premium mass customers to align with peers,” Dove wrote. The Singapore market also appears to be “firing on all cylinders.” Dove wrote that the country’s gross gaming revenue is expected to reach an all-time high in 2025, about 50% above pre-COVID-19 levels. Dove added that several quarters of strong EBITDA growth and strong execution demonstrate the company’s ability to maintain annual EBITDA in the high-$2 billion to low-$3 billion range. “We also believe that IR2, an $8 billion development adjacent to Marina Bay Sands, has the potential to contribute significant EBITDA to LVS over the long term, enabling LVS to expand its share in Singapore’s VIP and premium mass market,” Mr Dove said. According to the analyst, Las Vegas Sands should continue its trend of solid capital returns. Dove estimates that Las Vegas Sands should continue to maintain share repurchases of about $2 billion annually, even as it continues to invest significant capital in expanding Marina Bay Sands. The stock has risen about 27% this year, outpacing the S&P 500’s 16% rise in that time.
