Las Vegas Sands Earnings: Looking Past Near-Term Headwinds Toward a Stout Intermediate-Term Position

In our view, investors should look past narrow-moat Las Vegas Sands’ third-quarter results that were affected by transitory construction disruptions and lower hold. Instead, we think the focus should be on the prudent investments the company is making in its Macao and Singapore businesses, which will support revenue and profit growth starting next year, as well as buoy its regulatory edge (source of its narrow moat). We don’t plan to change our $58 per share fair value estimate materially, leaving shares undervalued.