Buy Rating Initiated For Sands
Shares of Las Vegas Sands Corp (LVS: 19.50 +1.14%) Macau subsidy Sands China rose to its highest level in more than two weeks up 6.3%, after Citigroup and UBS initiated a buy rating.
The target price issued by Citigroup on shares of Sands China is HK$12.50.
Citigroup suggested that the gaming company is primed to benefit from its large exposure in the Macau gambling market and strong presence on the Cotai Strip.
“Overall, we see Sands China Ltd as having the most scope for expansion within the “managed-growth” constraints set by the Chinese government,” said Citigroup analyst Anil Daswani in a report issued on Monday.
Daswani forecasts Macau total revenue to grow by 8% in 2010 and 11% in 2011.
Macau is the world’s largest and fastest growing gambling market.
In the U.S. market, Goldman Sachs reinstated its coverage on the casino operator with a Neutral rating and a $16.25 U.S. price target.
A representative from Goldman Sachs said, “In our view, the ‘best part’ of the Las Vegas Sands story currently remains in Macau as Las Vegas will face a challenging 2010 and the Singapore project has less certainty in its potential return characteristics.”
The investment firm also noted that LVS has better positioned itself both financially and operationally than it was a few quarters ago.
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