Las Vegas Sands Corp. : Buy momentum
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$50.18 | US$53.75 | US$48 | +7.11% |
Yesterday, Las Vegas Sand released 4Q 2011, earning per share up to $0.57, in line with consensus, from $0.42 one year ago. Revenue increased by 26 % to $ 2.54 billion more than consensus estimations which expected $2.47 billion. The group generates most of its revenue in Asia from its profitable casinos of Macau (60%) and Singapore (18%).
Currently, the company is trading at a high level about 3.63 times the revenue. A vast majority of analysts polled by Thomson Reuters (23 on 27) indicate a buy recommendation and an average target price set at $57.3 which represents a potential gain of 14%. As the chart remarked (financials heading), business of the company should increase in next years.
Since early december, LVS’ stock rose by 18%, it is in upward trend on all time hozizons. This trend might continue bolstered by 20-days moving average. Buy momentum is imposing itself again. Exceeding the intermediate line at $49.75 would help to new upward targets.
In this context, investors could take a buy order above $49.75 in closing price to target $53.75 and $56.65 at mid-term. However, a stop loss should be fixed at $48.