Ameristar Casinos "hold," estimates raised

02/02/07 - Stifel Nicolaus

NEW YORK, February 2 (newratings.com) - Analysts at Stifel Nicolaus & Company maintain their "hold" rating on Ameristar Casinos Inc (ASCA), while raising their estimates for the company.

In a research note published this morning, the analysts mention that in 2H07, the company’s biggest facility, St. Charles, is expected to come under competitive pressure. Despite being an attractive takeover candidate, a premium to Ameristar Casinos’ current share price appears unjustified, the analysts say. The EPS estimate for 2007 has been raised from $1.38 to $1.45 to reflect Ameristar Casinos’ expanding margins, which are reflected by the company’s better-than-anticipated 4Q06 results.