Sterne Agee Raises Price Target, Estimates on Las Vegas Sands and Wynn Resorts; Outlook on Macau Properties is Positive (LVS, WYNN)
On Monday an analyst at Sterne Agee adjusted the price target and earnings estimates on casino and hotel operators Las Vegas Sands Corp. (LVS) and Wynn Resorts, Limited (WYNN) as the overall Macau gross gaming revenue forecast is positive for the first quarter of 2013.
David Bain of Sterne Agee rates LVS at “Buy” with a new price target of $58, up from $52. This target is a +13.3% upside to Friday’s closing price of $51.19. The firm also boosted the fourth quarter 2012, calendar year 2013, and calendar year 2014 earnings per share estimates to 60 cents, $2.46, and $2.67, respectively. These numbers are up from the previous EPS forecast of 54 cents, $2.34, and $2.67. Sterne Agee is bullish on the Las Vegas Sands growth potential in Macau and expects a dividend increase in 2013. The earnings estimates above only reflect Macau operations.
Meanwhile, the analyst maintained a “Neutral” rating on WYNN, but increased the price target from $114 to $120. This target is about a -1% downside to Friday’s closing price of $120.78. The firm sees slower growth for WYNN’s Macau property compared to LVS, but still raised EPS estimates. The fourth quarter 2012, 2013, and 2014 EPS estimates are now $1.32, $5.89, and $6.67, respectively, up from $1.28, $5.92, and $6.71. These estimates reflect adjustments to Macau operations only.
Wynn shares were up 38 cents, or +0.33%, and Las Vegas Sand shares were flat during morning trading on Monday.
The Bottom Line
Shares of Las Vegas Sands (LVS) have a 1.95% dividend yield, based on Friday’s closing stock price of $51.32. The stock has technical support in the $45-$47 price area. If the shares can firm up, we see overhead resistance around the $55 price level. Shares of Wynn Resorts (WYNN) have a 1.65% dividend yield, based on Friday’s closing stock price of $120.86. The stock has technical support in the $110-$115 price area. If the shares can firm up, we see overhead resistance around the $125-$130 price levels.
Wynn Resorts, Limited (WYNN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. Las Vegas Sands Corp. (LVS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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