It’s time for investors to cash in some of their chips on two gambling stocks, according to Morgan Stanley.
The firm downgraded DraftKings and Penn National Gaming to equal weight from overweight after a strong run for both stocks, saying in a note that the hot streak has run its course.
“DKNG and PENN have both more than doubled since the start of the year. While we think a lot of the increased value is valid, we are concerned investors’ expectations are too high and see 6 potential negative catalysts through” the end of the year, the note said.
– CNBC.