BofA Merrill Lynch Global Research Raisede Target to $57
BofA Merrill Lynch Global Research
Las Vegas Sands (LVS)
Our $57 PO is based on 22x our 2014 EPS estimate of $2.56 and 14x 2014
EBITDA estimate of $4.22B. Our target PE multiple is in line with other luxury/
growth comps given a 40%+ three year EPS CAGR and PEG less than 1.
LVS free cash flow generation is improving owing to a combination of continued
mid-teens revenue growth, operating leverage, financial deleveraging and having
a very low corporate tax rate with a high earnings mix in Asia (where gaming
taxes are the primary form of taxation, which is embedded in EBITDA). As a
result, we think investor focus shifts from EV/EBITDA to PE driven approach on
valuation and think this clarity will be an upside driver for the stock.
I predict $57 before Feb 1. $65 by end of Spring Festival ( entire country on holiday Feb 9-15)
I can see this at 57+ as the economy recovers but this week. We are going a little fast don't you think? That being said when people now see a price target they think the stock should be at that level now.