Published on: April 6, 2026, 11:02 AM.
Updated on: April 6, 2026, 11:02 AM.
- Jefferies lowers Las Vegas Sands rating to “hold” from “buy”
- Analyst indicates that the company’s near-term earnings potential has diminished
- Price target on the stock decreased by 15%
Las Vegas Sands (NYSE: LVS) shares experienced a downturn on Monday following a downgrade from Jefferies concerning the Macau sector.
In a recent client update, analyst David Katz highlighted that Sands’ investment strategies and heightened attention to the premium mass market in Macau may impact the company’s earnings in the short term. Consequently, he downgraded his recommendation for the stock from “buy” to “hold” and lowered his target by 15% to $61, which still suggests a potential increase from the close of $54.30 on April 2.
“We see the near-term earnings outlook as less favorable, with adjusted earnings per share (EPS) growth slowing to +3.9% in 2026, compared to ~+20% from 2024 to 2025,” states Katz.
Among the 20 analysts monitoring Las Vegas Sands—recognized as the leading casino operator by market value—six have adopted a “hold” stance. The average price target set for the stock is $69.29, indicating about a 29% upside from current valuations.
Singapore Maintains Strength, Yet Can’t Compensate for All Losses
During challenging periods for Macau, Marina Bay Sands (MBS) has demonstrated resilience, with Sands reporting reliably strong performances at its Singapore integrated resorts.
As the most lucrative casino globally, MBS is a significant revenue driver and is projected to continue its growth. Analysts anticipate MBS reaching an earnings before interest, taxes, depreciation, and amortization (EBITDA) run rate exceeding $2.5 billion, potentially approaching $3 billion.
Katz mentions that while the MBS growth trajectory remains solid, it may not exceed Wall Street’s forecasts as it has in prior quarters.
“In Singapore, we predict continuous growth, albeit consistent with expectations,” the analyst notes. “It’s essential to recognize that the upcoming phase of property upgrades will include a greater proportion of non-gaming amenities (IR2), which typically yield lower returns on investment. Therefore, we’re adjusting our rating to ‘Hold,’ and modifications to our 1Q26 and FY26/27 Adj. EBITDA projections are (2.9)% and (4.9%) below consensus estimates, respectively.”
Macau’s Shift Toward Premium Market
While Macau has recently reported solid monthly gross gaming revenue (GGR), Sands’ emphasis on the premium mass audience could hinder its earnings and revenue growth potential in the region.
With the junket industry nearly defunct, competition for high-end mass clientele in Macau is robust, though operators like Wynn Resorts (NASDAQ: WYNN) thrive by targeting top-tier visitors.
“Wynn Macau has historically excelled in the premium mass segment, leading us to believe that this property will achieve above-market growth,” Katz asserts. “We project +16.2% year-over-year Adj. EBITDA growth in 1Q, buoyed by approximately 90 basis points of year-over-year margin expansion. LVS’s intensified focus on the premium mass segment may compromise margins and limit revenue growth possibilities for its Macau portfolio.”