Goldman Sachs has reduced its price target on Las Vegas Sands (LVS) to $73.00 from $80.00, while leaving its Buy rating intact. The revised objective sits near InvestingPro's Fair Value assessment and reflects a mixed read on the company's regional operations following its latest results.
Investors should note that the stock still appears slightly undervalued against that Fair Value metric despite trading at a price-to-earnings ratio of 27.9. InvestingPro classifies the company's overall financial health as "GOOD," and Las Vegas Sands reported robust gross profit margins of 79.8% over the last twelve months.
Regional performance in the most recent quarter diverged. Singapore was a clear outperformer, delivering EBITDA of $806 million - or $761 million on a hold-adjusted basis - comfortably above the consensus estimate of $692 million. That strength underpins Goldman Sachs' view that Singapore could be on a path to exceed $3 billion in EBITDA by 2026 and creates scope for incremental share repurchases.
By contrast, Macau missed expectations. Reported EBITDA for Macau came in at $608 million - $582 million on a hold-adjusted basis - below the consensus forecast of $625 million. The Macau business also recorded margins at their weakest levels since reopening, a development the company attributed to higher promotional allowances and increased operating expenses.
Goldman Sachs highlighted the combination of these trends in explaining the target reduction. The firm pointed to continued upside in Singapore but warned that Macau faces a more challenging backdrop, with tougher second-half year-over-year comparisons approaching. Those dynamics, Goldman says, could leave the stock trading in a range in the near term despite the Buy rating.
Separately, Las Vegas Sands reported a solid fourth-quarter showing for 2025, exceeding consensus on both earnings and revenue. The company posted earnings per share of $0.85 versus the $0.77 estimate, and revenue of $3.65 billion against expectations for $3.33 billion. Those results underline that the company beat market forecasts for the quarter.
Overall, the adjustment in Goldman Sachs' price objective reflects a balance: meaningful momentum in Singapore that could drive material EBITDA gains and shareholder returns, set against Macau headwinds that have compressed margins and could pressure near-term stock performance. Market participants will be watching how Macau trends evolve through the rest of the year and whether Singapore's trajectory translates into the higher EBITDA Goldman envisions.
Summary
Goldman Sachs trimmed its price target on Las Vegas Sands to $73 while maintaining a Buy rating. The move follows mixed quarterly results: Singapore outperformed expectations while Macau underperformed and saw margin deterioration. The company also reported Q4 2025 earnings and revenue above consensus.
Key points
- Goldman Sachs lowered its price target on LVS to $73 from $80 but kept a Buy rating (Markets: equities, Financials).
- Singapore delivered EBITDA of $806 million ($761 million hold adjusted), above the $692 million consensus; Goldman projects a path to over $3 billion in EBITDA by 2026 and possible increased buybacks (Sectors: gaming, hospitality).
- Macau reported EBITDA of $608 million ($582 million hold adjusted), below the $625 million consensus, with margins the weakest since reopening due to higher promotional allowances and operating expenses (Sectors: gaming, travel).
Risks / Uncertainties
- Macau's softer-than-expected results and compressed margins may weigh on near-term performance and keep the stock range-bound - impacting gaming and hospitality sectors.
- Tougher second-half year-over-year comparisons in Macau could further constrain earnings momentum and investor sentiment for LVS - relevant to travel and leisure markets.
- Elevated promotional allowances and rising operating expenses in Macau are squeezing margins, introducing uncertainty around near-term profitability - implications for casino operators and regional service providers.