Las Vegas Sands Stock Plummets 13.6% Amid Margin Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: seekingalpha
- Earnings Report Triggers Concerns: Las Vegas Sands (LVS) reported lower-than-expected margins from its Macau operations, leading to a 13.6% drop in stock price during afternoon trading on Thursday, marking its worst performance since the pandemic and reflecting investor concerns about future profitability.
- Analysts Maintain Buy Ratings: Despite underwhelming performance in Macau, both Jefferies analyst David Katz and CBRE Research analyst John DeCree maintained Buy ratings on LVS, citing the strong performance of Marina Bay Sands as a potential catalyst for restoring investor confidence.
- Price Target Increase: CBRE raised its price target for LVS to $72, implying an 11.0X trading multiple on FY27 EBITDA estimates, primarily due to extending the valuation year, which is expected to capture more growth from both Macau and Marina Bay Sands.
- Strategic Adjustment Signals: LVS management indicated a focus on margin recovery in Macau while continuing to drive growth at Marina Bay Sands, demonstrating the company's adaptive strategy in the face of challenges and aiming to enhance long-term investment value.
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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: 61.260
Low
56.89
Averages
69.12
High
80.00
Current: 61.260
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.
Las Vegas Sands Shares Drop 10% Due to Issues in Macau.
- Earnings Overview: Las Vegas Sands reported earnings that were not as negative as expected.
- Macau Challenges: The company is facing significant issues in Macau, the largest gambling hub in the world.
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Las Vegas Sands Reports Record Q4 2025 Earnings
- Record Performance: Marina Bay Sands achieved $806 million in EBITDA in Q4 2025, marking the highest in casino hotel history and a 27% increase year-over-year, reflecting the company's strong position in the high-value tourism market.
- Macao Market Challenges: Despite Macao's EBITDA of $608 million, the margin fell to 28.9%, with management acknowledging intense competitive pressures and emphasizing the need for strategic adjustments to achieve margin recovery in 2026.
- Share Repurchase Program: The company repurchased $500 million in LVS stock this quarter and increased its ownership in SCL to 74.8%, demonstrating a continued commitment to shareholder returns while laying the groundwork for future growth.
- Future Outlook: Management expects EBITDA to grow alongside revenue, planning to leverage scale and product advantages to better address market demands, showcasing confidence in Singapore while adopting a cautious stance on Macao's prospects.
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