Goldman Sachs has reaffirmed a Buy rating on Las Vegas Sands (NYSE:LVS) and kept its $80.00 price target, designating the company as its top pick within the gaming sector. The call comes amid broad sector pressure, with several demand and operational issues clouding near-term prospects for casino operators.
Analysts continue to express confidence in certain competitors as well - Wynn Resorts retains a Strong Buy consensus recommendation - but the group-wide picture is mixed. Gaming stocks have lagged year-to-date as leisure demand in Las Vegas cooled in December, Formula 1 events proved less stimulative than anticipated, and hopes for a conference-driven lift in the first half of 2026 are increasingly uncertain.
Investor interest in Macau also remains constrained. Market sentiment has been dampened by difficult second-half comparisons and concerns about operating expenses, making the region a more tentative driver of near-term recovery.
Goldman Sachs projects a patchwork of fourth-quarter results across the industry and is focused on 2026 performance forecasts. A key question for analysts is whether current estimates have bottomed out for Las Vegas operators - a conclusion Goldman views as premature, particularly after December trends reportedly turned negative.
Several factors could blunt potential tailwinds, especially for Las Vegas. Most notably, airline seat data indicate an almost 600,000-seat year-over-year shortfall in the first quarter, a material reduction in capacity that would significantly offset any incremental attendance from conferences. Timing of conferences themselves adds another layer of uncertainty in gauging near-term revenue benefits.
Company-level dynamics further complicate forward visibility. Wynn is managing Encore renovations and MGM has been handling Aria renovations, both of which raise questions about the timing and magnitude of growth as projects progress. These operational undertakings, combined with the demand headwinds noted above, contribute to a cautious tone among some market participants.
Despite these challenges, certain companies display resilient unit economics. Wynn Resorts is reported to be generating a 68.55% gross profit margin and has delivered a 34.9% price return over the past year, metrics that support continued analyst interest and suggest underlying margin strength even as revenue mixes shift.
Goldman Sachs explains its preference for Las Vegas Sands by pointing to revised expectations: Macau projections for the fourth quarter have been lowered sufficiently, while Singapore expectations remain conservatively set. That dynamic, Goldman argues, positions Sands favorably relative to peers because downside for Macau is more constrained and upside in Singapore may be underappreciated.
Investors are also tracking corporate developments at Wynn Resorts. The company announced that Craig Jeffrey Fullalove will succeed Julie Cameron-Doe as Chief Financial Officer; Cameron-Doe plans to retire in mid-2026. Fullalove currently serves as CFO and Chief Administrative Officer of the company’s Macau operations.
Analyst coverage of Wynn has seen fresh attention: Texas Capital Securities initiated coverage with a Buy rating and a $155 price target, citing market share gains in Las Vegas and Macau. JPMorgan raised its price target to $145 while maintaining an Overweight rating, pointing to promising prospects in the United Arab Emirates tied to the Wynn Al Marjan Island resort. Bank of America increased its price target to $150 and maintained a Buy rating after insights gleaned from an analyst event focused on Wynn Al Marjan Island. Macquarie reiterated an Outperform rating with a $143 price target, identifying the project’s luxury positioning and improved infrastructure as positive factors.
Together, these analyst actions reflect notable interest in certain operators even as the sector contends with a softer demand backdrop, renovation-related noise, and regional comparables that weigh on near-term expectations. Market participants will be watching upcoming earnings - including the next reported date for Wynn Resorts - and company disclosures closely for clearer signs around the timing and durability of a recovery.
Key points
- Goldman Sachs reiterates Buy and an $80.00 price target on Las Vegas Sands, naming it its top gaming pick.
- Sector-wide headwinds include Las Vegas leisure weakness in December, limited impact from Formula 1, and constrained investor appetite for Macau due to tough comparisons and expense concerns.
- Analysts highlight strong gross margins and notable price returns at certain operators even as near-term revenue drivers remain uncertain.
Risks and uncertainties
- Airline capacity shortfall - an almost 600,000-seat year-over-year decline in Q1 capacity could materially offset conference-driven attendance gains, affecting Las Vegas demand.
- Operational disruptions - renovation work at key properties such as Encore and Aria complicates growth visibility and could limit near-term revenue expansion.
- Regional comparables and operating expenses - difficult second-half comparisons in Macau and elevated operating expenses may constrain recovery in that market.