Shares of casino operator Ameristar Casinos Inc. seesawed Monday after JPMorgan Securities boosted its rating on the stock, saying that it could trade up as investors predict a possible takeover.
Shares traded as high as $14.60 early Monday, an increase of nearly 9 percent over Thursday's closing price. In afternoon trading, the stock declined 43 cents, or 3.2 percent, to $13.01. The stock has traded between $12.76 and $38 during the past 52 weeks.
JPMorgan analyst Joseph Greff raised Ameristar's stock to "Neutral" from "Underweight," noting that the company's stock had dropped roughly 25 percent since early June.
Also, Greff said the termination last week of Penn National Gaming Inc.'s $5.82 billion takeover deal by private investors is likely to increase speculation that Ameristar is now a target for Penn.
Penn received $225 million in cash as a termination fee, plus $1.25 billion in what amounts to no-cost capital until 2015.
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