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Sands China, Las Vegas Sands top picks for 2Q22: Bernstein

Las Vegas Sands and Sands China are the top 2Q22 picks for Bernstein, which reiterated its earlier forecast for the Macau operator to post $4.1 billion in EBITDA by 2025. 

Sands China will post EBITDA of $3.4 billion next year, topping 2019’s $3.3 billion, as long as travel resumes and there is no recession in China. 

“With strong cash flow and limited CAPEX commitment over the next few years we expect Sands China to de-lever and return to paying dividends by 2024,” it said in a note.

It bases its optimism on Sands’s leading position in Macau, with a 30 percent market share. It said it is well-positioned to outperform in the premium mass segment due to new products coming online and will do well in the high-margin mass and retail segments. 

In Singapore, Las Vegas Sands’ Marina Bay Sands property should return to pre-Covid levels over the next two years as the nation opens up and learns to live with Covid. 

MBS generated $1.7 billion in EBITDA in 2019, with a 54 percent margin, making it the most profitable casino in the world in that year. 

Bernstein forecasts EBITDA will hit $1.9 billion by 2025 and will see a significant jump once its S$4.5 billion second-phase expansion comes online after this date. 

It expects a low single-digit return on investment on the planned expansion. 

Bernstein said it has an outperform rating on both Sands China and Las Vegas Sands. 

For 2021, Sands China generated EBITDA of $338 million.

Sharon Singleton
Sharon Singleton
Sharon Singleton is a multi-media reporter with experience ranging from website management to reporting and editing for newspapers, news agencies and television. As Managing Editor she's been working with Asia Gaming Brief since 2013 and her specialties are: Business, current affairs, fluent in Italian, French, with working knowledge of Spanish.



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