Ameristar Casinos "buy"

04/05/07 - Morgan Joseph & Co

NEW YORK, April 5 (newratings.com) - Analysts at Morgan Joseph reiterate their "buy" rating on Ameristar Casinos Inc (ASCA). The target price is set to $37.

In a research note dated April 4 and published this morning, the analysts mention that the company has announced the acquisition of the Resorts East Chicago riverboat from Resorts International Holdings for $675 million. Ameristar Casinos expects to close the acquisition in 4Q07 and is likely to initiate an expansion project immediately after closing the acquisition, the analysts say. Ameristar is likely to generate significant efficiencies from this acquisition, Morgan Joseph adds.