Ameristar Casinos ( ASCA) and Boyd Gaming ( BYD) were trading lower after receiving downgrades Tuesday morning.

Ameristar shares were trading at $13.73, down 2.8%. Boyd was down 3.6% to $6.62.

JPMorgan analyst Joseph Greff said he considers Ameristar's shares fairly valued after they have risen nearly 45%.

Greff also said the Las Vegas-based company stands to gain from budget-conscious gamblers opting to play closer to home during the recession and "more disciplined" promotions by rival Harrah's Entertainment.

Greff cut Ameristar to neutral from overweight but raised his price target to $14 from $13.

Boyd Gaming was reduced to underweight from neutral, as the company's stock has more than doubled since late February.

Elsewhere in the casino gaming sector,

MGM Mirage ( MGM) continued its rise, up 17% to $7.29.

MGM Mirage shares surged almost 18% Monday upon news that its lenders will let it cover its partner's half of a $70 million payment on the City Center project in Las Vegas and extend the payment deadline to Friday.

The payment on the project with partner Dubai World was due Monday.

Las Vegas Sands ( LVS) was up 8.3% to $5.64.

Wynn Entertainment ( WYNN) was up 5.9% to $33.28.

Melco Entertainment Group ( MPEL) was off 1.7% to $4.70.

Penn National Gaming ( PENN) was down 1.2% to $27.23.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More from Investing

Immigration, Instagram and Oil - Here's What You Can't Miss Wednesday

Immigration, Instagram and Oil - Here's What You Can't Miss Wednesday

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes