Las Vengas Sands (LVS) has one of the best line-ups of future casinos in China’s Macau and in Singapore, writes Barclay’s Capital analyst Felicia Hendrix today in a note to clients.
She initiated coverage of the stock with an “Overweight” rating and a $24 price target.
Hendrix’s note follows yesterday’s bullish comments by Robin Farley of UBS on both LVS and Wynn Resorts (WYNN).
Noting that Macau is the largest and the fastest growing gaming market in the world, and Singapore has favorably low taxes, Hendrix believes the Marina Bay Sands in Singapore, which opens in Q2, and two parcels in Macau opening the latter half of next year, could become the company’s most profitable ventures yet, she argues.
Hendrix values LVS stock as a multiple of 12.6 times her 2012 estimate for Ebitda, becuase there won’t be a full year’s worth of data on the Singapore and Macau properties until that time.
LVS shares today are up $1.61, or 10%, at $18.23, while Wynn shares are up $4, or 6%, at $67.95.
