Las Vegas Sands Shares Are A Great Bet: Analyst

Tuesday, 8 May 2007 | 4:51 PM ET

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.

Call of the Day: LVS
The Las Vegas Sands could be poised for a big jump to $100/share, with Steven Wieczynski, Stifel Nicolaus vp of gaming and leisure research and CNBC's Erin Burnett

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.

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  • Brian Sullivan is co-anchor of CNBC's "Street Signs."

  • Co-anchor of CNBC's "Street Signs," Amanda Drury is based at the network's global headquarters in Englewood Cliffs, N.J.