Las Vegas Sands Still ‘Grossly Undervalued,’ Says Analyst
Posted on: July 24, 2025, 03:00h.
Last updated on: July 24, 2025, 03:17h.
- Stock’s recent resurgence extends on back of solid Q2 results
- Analyst says it’s still “grossly undervalued”
Las Vegas Sands (NYSE: LVS) stock is in the midst of a scintillating rally, which is extending Thursday on the back of strong Macau and Singapore results. Even with the shares up nearly 50% over the past 90 days, at least one analyst believes the casino equity remains attractively valued.
After the close of US markets on Wednesday, Sands said it earned 79 cents a share on revenue of $3.18 billion in the second quarter, easily topping estimates calling for earnings of 53 cents and sales of approximately $2.8 billion. Marina Bay Sands again delivered the goods, but analysts and investors are likely encouraged by buoyant results out of Macau.
Looking at Macau, margins came in slightly better than we were forecasting which makes us believe LVS isn’t just ‘buying’ business for the sake of it,” observes Stifel analyst Steven Wieczynski. “While we wouldn’t be surprised to see LVS get more aggressive with promotions/marketing, we would argue their Macau earnings before interest, taxes, depreciation, and amortization (EBTIDA) base should also grow in line with their spending, which should be the focus now, not absolute margins.”
In calling the stock “grossly undervalued,” the analyst lifted his price target on Sands to $60 from $57, implying upside of more than 17% from where it trades at this writing.
Las Vegas Sands Could Have ‘Incredible Upside’
Even with its recent rally, Sands stock is modestly in the red on a year-to-date basis — likely the result of investors’ concern regarding the cadence of recovery in Macau. Second-quarter data could go a long way toward allaying those worries.
Additionally, the stock is trading at discounted levels relative to historical norms and Macau estimates. Wieczynski notes Sands trades at 8.5x 2027 expected EBITDA, but its historical range on that metric is 12-14x. He said the long-term case for the stock isn’t so much about making a valuation call as it is about market participants realizing Sands’ Macau assets currently aren’t getting much credit.
That thesis is solidified by the fact that Marina Bay Sands continues knocking the cover off the ball. Wieczynski estimates the Singapore integrated resort alone accounts for approximately $35 of Sands’ share price. With the stock currently trading around $51, that implies investors are getting the operator’s Macau portfolio at a steep discount.
“When we look at where shares of LVS are trading, we still see incredible upside over the long-term as we believe our current Macau estimates embed some high level of conservatism,” adds the analyst.
Sands’ Cash Position in Fine Shape
Sands concluded the second quarter with $3.45 billion in cash on hand, and while the operator carries $15.68 billion in debt, it has the firepower to return capital to shareholders. It did just that in the June quarter, repurchasing $800 million worth of its equity. Sands has $1.2 billion remaining on a $2 billion buyback program announced earlier this year.
The potential for elevated shareholder rewards and the possibility of Macau’s rebound extending are among the factors supporting the Sands stock thesis.
“Bottom line is that for investors looking for new ideas that should see positive estimate revisions in 2H25, we would be buying LVS shares at current levels,” concludes Wieczynski. “While near-term results/margins will continue to get scrutinized, we believe investors are underestimating the full magnitude of the Macau market and not believing the return of the base mass business will be happening anytime soon.”
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