Sports betting and casino stocks fell sharply on Thursday, continuing a recent stretch of weakness in the space, but there are two names that stand out as attractive plays for investors, according to Deutsche Bank.
Thursday’s losses were led by Penn National Gaming and DraftKings, with drops of roughly 10% and 8%, respectively. Penn reported its first-quarter results before the bell and beat expectations for a key profit metric and revenue.
However, Deutsche Bank analyst Carlo Santarelli said in a note that the results still can’t justify the company’s valuation and reiterated the firm’s sell rating.
