Morgan Stanly Lowers Target Price on Las Vegas Sands (LVS) to $66 Due to Weak Macau Results

Core Viewpoint - Las Vegas Sands Corp. is recognized as one of the best consumer discretionary stocks to buy currently, despite a recent target price adjustment by Morgan Stanley due to mixed performance in its operations [1]. Financial Performance - The company reported a 49.6% year-over-year increase in adjusted attributable net income for Q4 2025, reaching $579 million, up from $387 million [2]. - Earnings per diluted share grew by 57.4% year-over-year to $0.85, compared to $0.54, aided by a $500 million stock repurchase during the quarter [2]. Operational Highlights - The strong earnings growth was primarily driven by the Singapore operations, with adjusted property EBITDA increasing by 50.1% year-over-year to $806 million, up from $537 million [3]. - The growth in Singapore was supported by increased gambling volume and an EBITDA margin expansion of 310 basis points year-over-year to 50.3%, along with a positive hold variance [3]. Macau Operations - In contrast, Macau operations showed weaker performance, with adjusted property EBITDA growing only 6.5% year-over-year to $608 million, up from $571 million [4]. - The underperformance in Macau was attributed to lower gambling volume and a contraction in EBITDA margin by 270 basis points year-over-year to 29.5%, although there was a positive hold variance [4].