Frontier Group downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Frontier Group to Equal Weight from Overweight with a price target of $8, down from $10. After navigating “several black swan events” and one near-recession in the last four years, U.S. airlines enter 2024 “looking to settle several scores,” the analyst tells investors in a research note. The firm says management execution and discipline will be key to driving structural de-ratings of stocks. Morgan Stanley remains constructive on the U.S. airlines in 2024, expecting the December momentum for the stocks to continue in 2024 as the market recognizes the resilience of fundamentals and tries to chart a path back to normalized earnings. The firm restored Delta (DAL) as its Top Pick in U.S. airlines.