Morgan Stanly Lowers Target Price on Las Vegas Sands (LVS) to $66 Due to Weak Macau Results

Las Vegas Sands Corp. (NYSE:LVS) is one of the 14 Best Consumer Discretionary Stocks to Buy Right Now.

On February 11, Morgan Stanley trimmed its target price on Las Vegas Sands by 1.5% to $66 (from $67), but kept its Equal Weight call on the stock. The firm cited better-than-expected results in the company’s Singapore operations (which were offset by weaker-than-expected Macau results) following the release of Sands’s Q4 2025 earnings as the trigger for this target price change.

Sands released its Q4 2025 results on January 28, which were headlined by a 49.6% YoY increase in the company’s adjusted attributable net income to $579 million (from $387 million). On a diluted share basis, earnings grew even faster, at 57.4% YoY, to $0.85 (from $0.54), as the company repurchased $500 million worth of common stock (~1.2% of outstanding shares) during the 4^th quarter.

The strong earnings growth was driven primarily by growth in the company’s Singapore operations (Marina Bay Sands). Adjusted property EBITDA grew 50.1% YoY to $806 million (from $537 million). This outperformance was driven primarily by gambling volume growth and EBITDA margin expansion (+310 basis points YoY to 50.3%), supplemented by positive hold variance (actual hold % of 4.36% vs. expected hold % of 3.90%).

Macao operations, meanwhile, lagged. Adjusted property EBITDA grew 6.5% YoY to $608 million (from $571 million). The underperformance was driven primarily by weaker gambling volume and a contraction in EBITDA margin (-270 basis points YoY to 29.5%), partially offset by positive hold variance (actual hold % of 3.92% vs. expected hold % of 3.30%).

Las Vegas Sands Corp. (NYSE:LVS) is a destination property developer, operating in Macao (The Venetian Macao, The Londoner Macao, Parisian Macao, The Plaza Macao, Four Seasons Macao, and Sands Macao) and Singapore (Marina Bay Sands). The company is based in Las Vegas, Nevada, and was founded in August 2004 by Gary Adelson.

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Disclosure: None. This article is originally published at Insider Monkey.