Zacks Investment Research downgraded shares of Las Vegas Sands Corp. (LVS) from NEUTRAL to UNDERPERFORM on September 28, 2012, with a target price of $43.00.
LVS' second-quarter results were disappointing as its key market Macau and Singapore experienced weak business due to slower economic growth. Moreover, performance at Las Vegas was also poor due to lower table games win percentage. Additionally, the stiff competition in Las Vegas market and heavy reliance on debt financing and capital markets for development remains a matter of concern for LVS. Further, the company plans to open a resort in Spain in the midst of ongoing European debacle, seems detrimental. We also remain cautious on the stock because of implementation of any stringent credit and visa polices by the Chinese Government. Hence, we downgrade our rating from Neutral to Underperform on the stock.
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