Morgan Stanley upgraded ratings on United Airlines and Alaska Air Group.
The bank boosted United shares rating was to equal weight from underweight. It raised Alaska Air shares to overweight from equal weight.
Morgan Stanley initiated coverage of American Airlines with an underweight rating.
“We reiterate our attractive view on the U.S. airlines, despite the stocks [rising] 85% in the last five months,” wrote Morgan Stanley analyst Ravi Shanker. The analyst cited an expected “ clear path to re-opening” as he mentioned that consensus figures are too low given Morgan Stanley’s view of strong volume and cost tailwinds. “We are about 30%+ above consensus in 2023,” Shanker said.