Casino stocks are taking a beating on Thursday after Jefferies analyst David Katz hit two major players in the space with downgrades.
Starting with Las Vegas Sands (NYSE:LVS), the analyst dropped the stock from a “buy” rating to a “hold rating. For the record, the analyst consensus rating for LVS stock is “moderate buy” based on 14 opinions.
To go with that downgrade, Katz also dropped his price target for LVS stock from $69 per share to $65 per share. Investors will note that this still represents a potential 11.1% upside, even if it’s now below the analyst consensus price target of $68.25.
More Bad News for Casino Stocks
The Jefferies analyst didn’t stop with LVS, as he also downgraded Wynn Resorts (NASDAQ:WYNN) from a “buy” rating to a “hold” rating. To put that in perspective, the analyst consensus rating for WYNN stock is a “moderate buy” based on eight opinions.
In addition to that downgrade, Katz also dropped the price target for WYNN stock from $135 per share to $114 per share. Even with the decrease, this still represents a possible 10.4% upside for the shares. However, it’s below the analyst consensus price target of $116.27 per share.
According to the Jefferies analyst, the reason for the downgrade has to do with the recovery of the casino business in Macau. While he notes that recovery from the pandemic is still in its early stages, he claims the market already understands the value that recovery will bring and that this is already baked into both LVS and WYNN stock.
LVS stock is down 2.4% and WYNN stock is down 2.7% as of Thursday morning.
Investors seeking out more of the most recent stock market news will want to keep reading!
We have all of the latest stock market coverage that traders need to know about on Thursday! A few examples include what’s happening with shares of GameStop (NYSE:GME), T-Mobile (NASDAQ:TMUS) and HashiCorp (NASDAQ:HCP) stock today. You can catch up on all of this news at the following links!
More Stock Market News For Thursday
- GME Stock Alert: What to Know as GameStop Ousts CEO
- TMUS Stock Price Prediction: Is T-Mobile Really Worth $160?
- Why Is HashiCorp (HCP) Stock Down 22% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.