Las Vegas Sands Q3 report likely ‘clearing event,’ says Deutsche Bank

Deutsche Bank says Las Vegas Sands last night reported solid Q3 results, which should calm concerns around share losses and a long road to margin recovery. Given the amount of consternation around the print, the stock’s “undemanding valuation,” and the more visible trajectory in Macau, relative to that of the gaming environment in the U.S., the results should “serve as a clearing event for shares,” the analyst tells investors in a research note. However, the firm expects the stock to remain largely tied to perceptions of the China macro environment, which it believes has been the primary driver of the weakness in stock in recent months.