It isn’t all negative for the Las Vegas Sands. Even though the stock dropped to $53.72, a new low, analysts are optimistic long term.
Stock fluctuations aren’t all bad
The pattern of declines has reached 6% in the last month and the stock continues to fluctuate.
Nonetheless, the long-range picture isn’t bad. Things could get better in Macau whose gambling regulator is reporting losses for August with profits down from last year at this time. Of course, the LVS is a dominant player in this market with five casinos.
Experts at Stifel Investment Banking expect a better economic outlook for the Las Vegas Sands.
According to Steven Wieczynski,
“Given our expectation for continued outsized growth within Macau’s mass market gaming segment, we continue to favor exposure to Macau’s most dominant mass market player, LVS.”
While the US-China trade war hasn’t helped gaming in this area, Wiecznski expects little tempering of his long-term enthusiasm.
“We believe LVS’ unrivaled scale and investments for the future position its Macau business to remain a leader in the world’s premiere gaming market for the foreseeable future.”
Additionally, the company’s impeccable balance sheet not only adds a level of safety and security to the picture, but also favorably positions it to successfully pursue any global integrated resort development opportunities of size that come along in the future.
All will be revealed in due time. Other analysts are echoing his views. They agree that LVS is stronger than ever.