Shares of DraftKings Inc. dropped 5.9% in premarket trading Monday, after J.P. Morgan analyst Joseph Greff turned bearish on the online sports betting and fantasy sports company, saying he sees a “longer runway and more risk” to achieving online-sports-betting (OSB) profitability than peers. Greff cut his rating to underweight, after being at neutral for at least the past two years, but kept his stock price target at $12, which implies about 21% downside from Friday’s closing price of $15.14. Greff also downgraded PENN Entertainment Inc. , to neutral from overweight, as he believes the stock has less upside potential than Las Vegas casino operator peers. PENN’s stock fell 2.9% in premarket trading, with Greff’s $39 price target implying 11.5% upside to Friday’s closing price of $34.98. DraftKings stock has plunged 44.9% year to date through Friday and PENN shares have tumbled 32.5%, while the S&P 500 has declined 15.5%.
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