February 24, 2024
London, UK

Here is Why Las Vegas Sands Jumps Today

LVS Las Vegas Sands

Las Vegas Sands Corporation (LVS) is trading 12.35% higher at $39.85 after Macao announced its plan to allow tour groups from mainland China starting in November after three years of restriction. Macau region head said that Guangdong province will be the first province to enter Macau followed by Fujian, Zhejiang, Jiangsu and Shanghai.

The local authority estimates daily visitors would reach 40,000 while in previous months the visitors were about 11,000. Another measure that will support the return of visitors to Macau is that China will restart the e-visa issuance, a procedure that will make it easier to travellers to reach the famous gambling spot. Las Vegas Sands Macau’s revenue accounts for about 35% of total revenue.

The risk for a new lockdown still exists as China continues its zero covid policy. Chinese gamblers account for almost 85% of the total casino revenues.

Despite the negative mood in the markets over the last weeks due to rising inflation and the interest rate hikes from FED, all the casino stocks rise in the news. Wynn Resorts Ltd. (WYNN) is 12.36% higher at $67.02. Melco Resorts (MLCO) jumps 29.91% to $6.87 and MGM Resorts (MGM) adds 0.52% at $30.23. Wall Street is trading lower today. S&P 500 is 0.54% lower at 3,676, Dow Jones is 0.75% lower at 29,359, while Nasdaq trades 0.15% higher at 12,238.

Jefferies Upgrades Las Vegas Sands

Adding to the good news from Macau, Las Vegas Sands Corporation (LVS) received a boost from Jefferies independent investment bank which upgraded LVS stock from Hold to Buy. I expect more brokers to follow with LVS stock upgrade after the good news from Asia.

Las Vegas Sands stock is trading 12.66% higher at $39.94. The stock is 6.14% higher year to date while in the last three months the gains are up to 20%. Today’s strong move cancel the recent bearish bias for the stock as it managed to break above the three major moving averages which give bulls the upper hand.

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