Las Vegas Sands Stock Surges on Optimism Around Macau Recovery

JPMorgan Upgrades to Overweight with a $52 Price Target

Las Vegas Sands Corp. (LVS) experienced a significant gain of over 10% on Thursday after releasing first-quarter earnings that surpassed expectations. Despite a 51.2% decline in revenue to $1.78 billion, the company exceeded consensus estimates by $120 million, and reported a GAAP net income of zero, beating forecasts by 10 cents per share.

CEO Sheldon Adelson expressed confidence, stating, "Our robust balance sheet positions us well to navigate through the pandemic and preserve all promising growth prospects for the future. We remain highly optimistic about the eventual rebound in travel and tourism spending across our key markets."

Following the earnings release, JPMorgan assigned an Overweight rating with a $52 price target for LVS shares. Analyst Joseph Greff highlighted potential gains from improving conditions in Macau, one of the earliest gaming markets to face COVID-19 setbacks. Additionally, Greff noted that Las Vegas Sands boasts superior liquidity compared to competitors, presenting an attractive low-entry opportunity for new investors.

From a technical analysis perspective, LVS stock rebounded from its trendline support and is moving toward the upper boundary of its price channel. The Relative Strength Index (RSI) remains neutral at 50.02, while the Moving Average Convergence Divergence (MACD) indicates a delicate upward momentum. These signals suggest potential for further gains in upcoming trading sessions.

Investors should monitor for a breakout above the upper trendline resistance, targeting the 50-day moving average at $49.86 or the 200-day moving average at $57.45. Conversely, a decline could prompt a retest of the lower trendline support, with possible drops toward reaction lows at $37.50 or $35.00.

The author does not hold any positions in the stocks mentioned, except through passively managed index funds.

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