Las Vegas Sands (LVS) and Boyd Gaming (BYD) reported Q2 results largely in line with expectations, with stronger domestic trends offsetting softer Macau and Singapore performance, Morgan Stanley said in a note Monday.

For Boyd Gaming, recent activist involvement in brick-and-mortar gaming suggests higher valuations for businesses with less owned real estate, implying that the company's core business is trading at an undemanding valuation even after accounting for its real estate, the firm said.

For Las Vegas Sands, valuation has declined as growth in Macau has slowed. Despite this, Marina Bay Sands remains a "crown jewel," delivering consistent post-pandemic EBITDA growth, the bank said.

The firm said that for Boyd Gaming, it now forecasts 2026 revenue of $4.1 billion and earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs, or EBITDAR, of $1.3 billion, compared with $4.1 billion and $1.3 billion previously.

The bank also lowered its 2026 revenue and EBITDAR projections for Las Vegas Sands to $13.7 billion and $4.7 billion, compared with $14.1 billion and $5 billion previously.

Macau property EBITDA is reduced to $2.2 billion in 2026 and $2.4 billion in 2027, while Singapore property EBITDA is adjusted to $2.9 billion in 2026 and $2.9 billion in 2027.

Morgan Stanley lowered its price targets on Boyd Gaming from $90 to $89 and on Las Vegas Sands from $68 to $61, and has equal-weight ratings on the stocks.

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