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Las Vegas Sands (NYSE:LVS) was the beneficiary of double-barreled positive impacts on Monday, as Macau signaled easier entry for gamblers and Jefferies upgraded the stock to Buy.
Early on Monday morning, Macau officials indicated an e-visa for mainland travelers and tour groups will soon be allowed again to visit the gambling hub. Per the statements, travel restrictions are due to be dropped in November as a new regime of regulations comes into place.
While the stock was already rising in pre-market hours, a move by Jefferies to quickly upgrade the stock to “Buy” and highlight the scale of opportunity ahead for Las Vegas Sands (LVS) in Macau led shares even higher. The firm’s analyst David Katz said that the news of Macau easing restrictions necessitated an “immediate rerating of shares” despite significant questions remaining.
He upgraded the stock to “Buy” and raised his price target to $50 from a previous price target of $40. Shares rose 11.81% on Monday, rising strongly alongside Macau-linked casino stocks broadly. Melco Resorts & Entertainment (MLCO) led gains in the space with a stark 25.47% rise.
Read more on the details of the e-visa opening.