Las Vegas Sands Shares Boosted By Analyst’s Comments

07.17.2008 | 10:10 am | News, casinos

The flagging shares of the leading corporation Las Vegas Sands, which owns two of the largest casinos on the Las Vegas Strip - the Venetian Hotel and the Palazzo Hotel - were boosted yesterday. A top analyst stated that the operator’s current stock price does not currently reflect the growth potential in Las Vegas Sands’ investments in the international market, specifically in the area of Macau.

During the past year, the stock price of the corporation has dropped from a high of $148.76 in October 2007 to a low of $30.56 last week – decreasing by more than $100. The reasons for this sharp decline have been stated as concern about the impact of reduced airline capacity and increasing gas prices, which may reduce the number of tourists travelling to the Las Vegas casinos. However, the forecast of analyst Lawrence Klatzkin of Jefferies & Co. yesterday saw a boost of 9.4% in shares in Las Vegas Sands, possibly
signalling a brighter future for the seemingly declining operator.

In a note to investors, Klatzkin stated that “current trading levels do not give (Las Vegas Sands) credit for its unfunded Macau projects, nor does the price include the company’s potential to operate in new international locations as they become available”, explaining the role of the international dimension of Las Vegas Sands in ensuring the stock boost. The analyst also said that it is expected that Las Vegas Sands will be able to “compete for any new markets opening in the future”, for instance the increasingly Westernised Japanese or Indian casino market.

Another positive sign for Las Vegas Sands was pointed out by Klatzkin in that the corporation is currently outperforming both the market and gaining market share. Whilst the company suffered a heavy decline last year, the future seems brighter for Las Vegas Sands.