Analyst Note| Dan Wasiolek |
While the pandemic continues to challenge Las Vegas Sands’ near-term demand in Macao (70% of estimated 2023 EBITDA) and Singapore (30%), our long-term constructive stance on these regions and the company’s competitive positioning is intact. In this vein, we think Sands operates the leading resorts and locations in the supply-capped and demand-abundant regions of Macao and Singapore. And once travel is permitted, we expect the company’s casinos to see a quick demand rebound, followed by healthy long-term growth (high-single-digit annual sales lift in Macao during 2024-30). We don’t expect a material change to our $61 fair value estimate, and we view shares trading around a 20% discount as attractive.