Azul upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley analyst Josh Milberg upgraded Azul to Equal Weight from Underweight with a price target of $8.60, up from $6. Azul’s recent lessor agreement resolves the issue of the large "cash gap" over the next few years, which had been a "key pillar" of the firm’s prior Underweight rating, the analyst tells investors. The firm also cites a more constructive Brazilian air market outlook.