Sterne Agee Maintains “Buy” Rating on Las Vegas Sands; Expects Dividend Increase (LVS)

Sterne Agee announced on Monday that it has maintained a “Buy” rating on resort company Las Vegas Sands Corp. (LVS).

The firm has reaffirmed a “Buy” rating and $67 price target on LVS. This price target suggests a 12% upside from the stock’s current price of $59.24.

Sterne Agee analyst David Bain commented: “Based on July and August data channel checks and our September forecast, we believe LVS’ Macau division is trending8% to 10% above the Street’s 3Q13 estimate of ~$670m.”

“Before the end of the year, we believe LVS regular dividend will be increased to $1.60+ per annum from $1.40,” he said. “Further, LVS leverage should be ~1.4x by 4Q13 – underutilized, in our view. At that time, 1 additional turn of leverage could add over $4.6b in cash that could be returned to investors in the form of more significant buybacks or a one-time dividend,” the analyst added.

Las Vegas Sands shares were up 46 cents, or 0.78%, during pre-market trading Monday. The stock is up 28% YTD.