Deutsche Bank Adds Las Vegas Sands to Conviction List

Date: December 20, 2023, 10:58h. 

Last updated: December 20, 2023, 10:58h.

Las Vegas Sands (NYSE: LVS) stands out as one of the top picks for the first quarter of 2024 on Deutsche Bank’s “Fresh Money List”. The recognition from the research firm makes this casino operator an appealing investment as the new year approaches.

The Marina Bay Sands resorts in Singapore
The Marina Bay Sands resorts in Singapore. Operator Las Vegas Sands was named to Deutsche Bank’s Fresh Money list for Q1 2024. (Image: Marina Bay Sands)

LVS is the only gaming equity on the list of nine consumer stocks and enjoys a flurry of positive recommendations for the upcoming year, despite underperforming the S&P 500 with shares up only 1.73% this year.

Deutsche Bank analyst Carlo Santarelli comments, “We see considerable value in LVS shares at current levels and we believe some of the concern around the trajectory of the recovery in Macau is misguided, with too much being read into short term data points”.

Santarelli points out that Sands’ focus on Macau could be particularly advantageous as concerns grow over reduced U.S. consumer spending on gambling.

China, Macau Headwinds ‘Understood’

Sustained growth in Macau, perceived low valuations, and an aggressive strategy for stock repurchase make Las Vegas Sands a potential strong buy as it continues to recover from the impact of the pandemic.

Las Vegas Sands’ situation should not be misunderstood even amid concerns about China’s economic downturn. Santarelli argues that fears surrounding Chinese economic weakness should not hinder potential good returns for the company.

The analyst concluded, “We expect LVS to be aggressive with the buyback in the early stages.”

Las Vegas Sands might just have what it takes to outperform expectations moving forward.

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