UPDATE: Sterne Agee Lowers PT on Asia Entertainment & Resources Ltd. Following Rights Offering Completion
In a report published Friday, Sterne Agee analyst David Bain reiterated a Buy rating on Asia Entertainment & Resources Ltd. (NASDAQ: AERL), but lowered the price target from $16.00 to $9.50.
In the report, Sterne Agee noted, “We maintain our Buy rating and adjust estimates following the completion of AERL's rights offering, which transforms a ~$60m shareholder loan into permanent capital. Shareholder loans are not allowed under the Listing Rules of the Stock Exchange of Hong Kong (‘SEHK'), and AERL's upcoming HK listing should unlock equity value for investors.”
Asia Entertainment & Resources Ltd. closed on Thursday at $3.92.
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