Jefferies sees growth for Churchill Downs on multiple fronts, upgrades to buy

Medina Spirit #8, ridden by jockey John Velazquez, (R) crosses the finish line to win the 147th running of the Kentucky Derby ahead of Mandaloun #7, ridden by Florent Geroux, and Hot Rod Charlie #9 ridden by Flavien Prat ,at Churchill Downs on May 01, 2021 in Louisville, Kentucky.
Jamie Squire | Getty Images Sport | Getty Images

Shares of Churchill Downs have been lagging the pack recently, but investment firm Jefferies said Friday that this is a good time for investors to place their bets on the company.

The casino stock has been under pressure recently, dropping 35% over the past two months. However, analyst David Katz said in a note to clients that the weakness wasn't driven by fundamentals and upgraded the stock to buy from hold.