Las Vegas Sands action touted by analyst as a good bet despite Macau fading


A New York analyst tells investors that shares of Las Vegas Sands Corp. remain a good bet.

Carlo Santarelli of Deutsche Bank’s New York office released a report to investors after the stock market closed on Wednesday, saying the recent market decline could be attributed more to the Macau government’s handling of COVID containment policies -19 than government review of gambling laws. and the granting of casino licenses, called concessions.

Santarelli maintained a “buy” rating on Sands stock in Wednesday’s report.

A spokesperson for Sands did not comment on the analyst’s report.

Sands released a Securities and Exchange Commission note earlier this month warning that Chinese government border restrictions contributed to business losses in July and August.

A week later, shares of Sands, Wynn Resorts Ltd. and MGM Resorts International, all held at resorts in Macau, dived on the news that the Macau government was going to undertake a review of concessions and the gambling law. Shares of Sands, Wynn and MGM fell 9.8%, 10.9% and 3.9%, respectively, in the September 14 trading session.

Las Vegas Sands shares rose 53 cents, 1.5%, to $ 36.12 per share in volume on Wednesday, slightly above the daily average. Wynn shares closed $ 2.02, 2.6%, higher at $ 80.79 Wednesday on volume slightly above the daily average. MGM shares closed up $ 2.47, 6.1%, at $ 43.02 per share by volume more than twice the daily average.

“Although (Las Vegas Sands), and Macau-centric stocks in general, haven’t been the brightest names to own,” Santarelli wrote, “… continuing concerns about the gambling law and the concession process. ”

Santarelli said “the risk of falling from current levels should be quite limited”, although he warned “the short term could be choppy”.

Roy Smolarz, lawyer and international investment banker, agreed this could be a tough sledge for investors. He cited the tension between Beijing and Hong Kong and the unrest there as reasons to believe the central government could flaunt its strength in Macau.

“They have such an opportunity to impose change and they have exercised so little restraint in Hong Kong in forcing change on so many companies there that conventional wisdom must accept the idea that one significant element of change in the way American games operate in Macau is imminent, ”said Smolarz, managing director of Las Vegas-based RS Global Gaming Finance LLC.

The Review-Journal is owned by the family of Dr Miriam Adelson, majority shareholder of Las Vegas Sands Corp.

Contact Richard N. Velotta at [email protected] or 702-477-3893. To follow @RickVelotta on Twitter.

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