Analyst Downgrades 2 Casino Operators

NEW YORK (AP) — Ameristar Casinos Inc. and Penn National Gaming Inc.'s shares are unlikely to rise significantly in the near future, an analyst said Tuesday, and downgraded the stocks.

Shares of the two casino operators have surged from their 52-week lows — with Ameristar's stock having advanced more than threefold, and Penn National's more than doubling — Goldman Sachs analyst Betsy Gordon wrote in a note Tuesday.

"Earnings upside is limited as regional revenue trends could remain mixed in (the) third quarter and companies have captured most available cost saves," Gordon wrote.

She cut ratings on the stocks to "Neutral" from "Buy" and lowered her price target on Ameristar to $17 from $22 and Penn National to $29 from $37.

Ameristar Casinos shares lost 72 cents, or 4.2 percent, $16.11 in morning trading. The stock has traded between $4.64 and $23 during the past year.

Shares of Penn National fell $1, or 3.5 percent, to $27.27. The stock has traded between $11.82 and $35.18 over the past year.