Q: It is doing well with Project Eagle turning around its US operations. It has gone from 0 analyst coverage to 3 covering it since November, and PT of $209. After hitting a high of $195 it has drifted to $175 on no news. I am thinking this is due to tariff threats, would you agree? With a negative beta I like it as a hedge, but I am wondering if there is now market specific risk and should sell.
5i Research Answer:
It is hard to say specifically that it is tariffs, but tariffs have changed sentiment on most stocks so it is more likely than not, in the absence of real news. LAS has about half of its business in the US. At 10X earnings and a 2.2% yield we would think that a lot of concerns are already priced in to the low valuation. EPS growth is expected this year and we would not consider it a sell.