UPDATE: Deutsche Bank Downgrades Las Vegas Sands Corp.

Carlo Santarelli of Deutsche Bank downgraded shares of Las Vegas Sands Corp. (NYSE: LVS)  to Hold from Buy with a price target lowered to $65 from $74.

"While we continue to believe the Macau market has a favorable longer term arc, driven by room supply growth, infrastructure, and deeper mainland penetration, we see fundamental ambiguity, what we believe will be an elongated share loss story, and margin pressure, resulting in a fair valuation here," Santarelli wrote Tuesday.

Related Link: Deutsche Bank Sees 2015 Turnaround In Macau Gaming Revenue

Santarelli "struggles" to see any visible and sustainable catalysts for Las Vegas Sands. In fact, the analyst notes that Las Vegas Sands is the least likely of the major Macau operators under his coverage to benefit from stabilizing trends in Macau.

Santarelli believes that the consensus estimates remain "meaningfully elevated" based on the perception that a mass market mix will drive margin expansion in 2015, a belief the analyst does not share.

Bottom line, Las Vegas Sands could see a positive catalyst in the fourth quarter from a potential Japan announcement, but the process will be "bumpy." In addition, the analyst notes that over the long-term, shares of Las Vegas Sands will be correlated to Macau trends, and not Japan.