Close on the heels of Las Vegas Sands Corp. (NYSE:LVS) reporting results miss in the fourth quarter, S&P Capital IQ reduced its price objective by $6 to $62. Analyst Amobi has, however, kept his Buy rating on the stock. The stock is still attractive for the simple reason of providing 5.3 percent dividend yield.
The analyst explained that his price tag on Las Vegas Sands was based on premium 2017 EV/EBITDA of 13.2X compared to its rivals. Still, the revised down price indicated upside potentials of nearly ten percent from the regular closing price of Wednesday.
However, Amobi boosted his EPS estimate by ten cents a share to $2.64 for the year 2017 citing absence of casino pre-opening costs. The analyst established EPS estimate of $2.85 for the year 2018.
The move came after the company reported adjusted EPS of 62 cents, which was three cents below the Capital IQ consensus. Revenue grew 7.4 percent. This included the newly launched casino in China where Las Vegas Sands crucially reiterated a continued market recovery. The analyst pointed out 23 percent growth in visitation. “Adjusted property EBITDA margins narrowed 40 basis points. Key Q4 metrics were notably mixed at Macao (vs. Las Vegas),” Amobi concluded in his research note to clients.
In the pre-market trading, the stock dropped 4.68 percent on Thursday.