Jefferies downgrades Las Vegas Sands and Wynn as Macau recovery is priced in

Jefferies analysts downgraded shares of Las Vegas Sands (NYSE:) and Wynn Resorts Limited (NASDAQ:) to Hold from Buy given that the expected Macau recovery is “relatively well-understood.”

New price targets on these two stocks are $65 and $114, down from the prior $69 and $135, respectively.

Both stocks are down 2.2% in pre-market Thursday after Jefferies made its move.

“We believe the bull case arguments for growth in both cases remain, and while the recovery in Macau remains early stage, we believe these dynamics are relatively well-understood by the market and approximately priced in at present levels,” analysts further said in the client note.

Shares in LVS and WYNN are up 21.7% and 25.2% year-to-date through Wednesday’s close.