Broker Recommendation: LVS (20230104)

*One Stock Before the Bell*

*Las Vegas Sands Corp (NYSE: LVS)*
$49.33 (2.62% YTD)

LVS owns casino resorts and convention centers. While casinos attract travelers mainly over the weekends, its convention centers draw visitors during the slower mid-week period. *25.67% of Q3 revenue* came from *Macao* while 75.22% came from *Marina Bay Sands (MBS) in Singapore*. This is in contrast to *before the pandemic*, where *revenue from Macao was more than 60%*. As China re-opens its borders, the Macao business should improve as it is the *only city in China where gambling is legal*.

With several countries restricting entry of Chinese travelers, Macao should see *lesser competition* and a *greater influx of visitors from mainland China*. *Revenue per Available Room* and *Occupancy Rate* for MBS grew by 192.31% YoY and 33.89% respectively. The stock looks attractive at a *blended forward P/E ratio of 39.2x*, a *22% discount* to its 2Y average P/E.