Las Vegas Sands hurt by Chinese downturn
The economic slowdown in China and current U.S. trade war has hurt Las Vegas Sands stock prices, putting the company into a difficult situation.
Though long-term prospects for the company remain solid, they are now at risk of potential buy-outs. Dividend yield, discounted cash flows, and multi-factor analysis are indicating that LVS is undervalued.
Down by over 25% from its yearly highs, some argue the reduced spending in Macau are the main culprit, and pose only temporary shortfalls.
Others say the stock price already reflects these lowered earnings and uncertainty. Downward pressure is likely to remain on the stock price for the interim, but should lift in Q4.
Las Vegas Sands holds six gaming licenses in Macau, where it generates the majority of its income. It also operates in Singapore as one of the only two licensed casinos.