Ahead of the Bell: Isle of Capri Casinos upgraded

Jan 21, 2011 9:41 AM

An analyst boosted his rating for Isle of Capri Casinos Inc. on Friday, saying the casino operator's stock has been oversold since following an offering of 5.3 million shares.

Isle of Capri announced the public stock offering on Wednesday and said Thursday that it planned to raise about $54.3 million in proceeds from the offering, which was priced at $10.25 apiece.

Merriman Capital's Adam Steinberg said in a client note that Isle's stock should be appealing to patient investors and that the offering will give the casino operator some financial flexibility.

Steinberg lifted Isle's rating to "Buy" from "Neutral."