Las Vegas Sands Shares Are A Great Bet: Analyst
Shares in Las Vegas Sands "will really take off around July and August," says Steven Wieczynski. The vice president of gaming and leisure research at Stifel Nicolaus told "Street Signs" viewers why his firm upgraded its rating of the resort company -- despite its shares falling 23% since February.
Wieczynski told CNBC's Erin Burnett that Las Vegas Sands is a rally play: He compared the company to its "closest competitor," Wynn Resorts -- which only dropped 8 1/2% in the same period. "We think the [Las Vegas Sands] shares have overcorrected," he said.
Why? Wieczynski explained that investors got caught up in the firm's disappointing margins, "a little bit weaker" than expected. But he attributes that to the resort company taking on excess overhead as it prepares for the launch of Venetian Macau, its massive new complex on the Chinese gaming island.
The researcher noted that Wynn Resorts is already showing strong returns on its own Macau development -- which makes Wieczynski even more confident that Las Vegas Sands shares will enjoy a "substantial rally" in midsummer, when the Venetian has its grand opening.