Morgan Joseph Upgrades Ameristar Casinos (ASCA) to Buy, FCF of ~$150 Million in 2011

Morgan Joseph upgraded shares of Ameristar Casinos (NASDAQ: ASCA) to a Buy rating from its previous rating of Hold and is initiating its price target at $25.

The upgrade reflects the recent change in the company's capital structure and improving trends in most of Ameristar's markets. The firm reports that it is raising its estimates due to a lower shares count and better than previously anticipated Q1 results. Morgan Joseph is raising its 2011 and 2012 EPS Estimates from $1.02 and $1.13 to $1.43 and $1.88.

The company does have a weak pipeline looking ahead when compared to some of its peers, but the firm believes that it will generate ~$150 million of free cash flow in 2011 and $130 million in 2012.

For more ratings news on Ameristar Casinos click here and for the rating history of Ameristar Casinos click here.

Shares of Ameristar Casinos closed at $18.68 yesterday.

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