Jefferies analyst Andrew Lee, CFA maintained a Buy rating on Sands China (SCHYF – Research Report) today and set a price target of HK$37.00.
Andrew Lee, CFA has given his Buy rating due to a combination of factors surrounding Sands China’s stock (SCHYF). Despite recent earnings falling below expectations, primarily due to renovations at key properties and a temporary shutdown of the Cotai Arena, Lee sees potential for growth. The renovations, although currently a drag on earnings, are poised to enhance the future appeal and competitiveness of the properties. Lee also acknowledges the strength of The Venetian, which continues to be a significant earnings driver for the company, suggesting resilience in certain segments of the business.
Moreover, with renovations expected to conclude by the Chinese New Year in 2025 and the Cotai Arena set to reopen later this year, Lee anticipates a reduction in margin pressure and a subsequent rebound in profitability. Although earnings are currently under review, the anticipation of market share retention and potential margin improvement post-renovations contribute to the positive outlook. This forward-looking perspective, accounting for both temporary setbacks and strategic investments in the company’s future, underpins the Buy rating for Sands China.
According to TipRanks, Lee, CFA is an analyst with an average return of -5.4% and a 30.00% success rate.
In another report released on April 16, J.P. Morgan also maintained a Buy rating on the stock with a HK$27.50 price target.
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Sands China (SCHYF) Company Description:
Sands China Ltd. operates as an investment holding company. Through its subsidiaries engages in the development and operation of integrated resorts in Macao that contains gaming areas, meeting space, convention and exhibition halls, retail and dining areas and entertainment venues. It operates through the following segments: The Venetian Macao, Sands Cotai Central, The Plaza Macao, Sands Macao, The Parisian Macao, and Ferry and Other Operations. The company was founded by Sheldon Gary Adelson on July 15, 2009 and is headquartered in Macau.
