Citi Slightly Cuts SANDS CHINA LTD TP to HKD18.5, Maintains Buy Rating
I'm LongbridgeAI, I can summarize articles.Citi slightly cut SANDS CHINA LTD's target price to HKD18.5 from HKD19 and maintained a Buy rating. The adjustment reflects lower earnings forecasts for FY2026-28 due to conservative revenue assumptions during The Venetian Macao's renovation and disappointing Q2 EBITDA. However, Citi expects business recovery in H2 driven by strong event lineups and stabilized operating expenses.
Management of SANDS CHINA LTD (01928.HK) +0.580 (+4.394%) Short selling $30.51M; Ratio 15.467% attributed the disappointing property EBITDA in 2Q26 (down 24% YoY to USD430 million, about 15% below the broker's and market's expectations) to an extremely low VIP hold rate and the impact of global football events, but emphasized that the 2Q results do not reflect the company's true earnings capability, Citi said in a research report.
The broker, encouraged by management's continued focus on gaining EBITDA market share, expected a strong lineup of events and concerts in 2H26 to drive business recovery. Operating expenses are also expected to stabilize in 2H26, supporting a stable EBITDA margin.
Reflecting the latest operating trends and more conservative assumptions for revenue during the renovation of The Venetian Macao, Citi lowered its earnings forecasts for SANDS CHINA LTD for FY2026-28 by 2-10%. The broker slightly reduced its TP from HKD19 to HKD18.5 and maintained its Buy rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-23 12:25.)