DiamondRock Hospitality Plunges 11.38% on Morgan Stanley Downgrade

On April 25, 2025, DiamondRock's stock price plummeted by 11.38% in pre-market trading, signaling a significant downturn for the hospitality company.

Morgan Stanley has revised its price target for DiamondRock Hospitality Company (DRH), reducing it to $7 from a previous target of $9. This adjustment comes as part of a broader reassessment of the company's financial outlook and market position.

In a report released on Tuesday, Morgan Stanley not only lowered the price target but also set an “equal weight” rating for DiamondRock Hospitality. This rating suggests a neutral stance on the stock, indicating that the company's performance is expected to align with the broader market rather than outperform it.