Ameristar Casinos downgraded to "underweight" - update

03/30/07 - Prudential Financial

NEW YORK, March 30 (newratings.com) - Analyst Joel H Simkins of Prudential Financial downgrades Ameristar Casinos Inc (ASCA) from "neutral weight" to "underweight." The target price has been reduced from $34 to $29.

In a research note published this morning, the analyst mentions that the company’s share price has appreciated significantly and rebounded by about 100% since July, 2006. Ameristar Casinos is expected to be a standalone entity and is unlikely to be acquired in the forthcoming several years, the analyst says. There is legislative risk associated with the company’s key facility in Kansas City, Prudential Financial adds.