Morgan Stanley Prefers Delta, United, Alaska Air And Spirit Over Other Airliners

A new report by Morgan Stanley analyst Rajeev Lalwani focuses on the firm’s bullish outlook for the airline industry. Morgan Stanley sees strong fundamentals in the space and believes that patient airline investors will be rewarded as the current cycle plays out.

In addition, Morgan Stanley initiated coverage on several big-name airline stocks.

Value Plays

In the report, Lalwani praised the strong (about 10 percent) free cash flow (FCF) yields, the potential for double-digit earnings growth and the low (about 10x) price to earnings (P/E) ratios in the airline industry as indicators of the value opportunity for investors.

Lalwani believes that these strong industry fundamentals, including capital returns, will continue to limit the potential downside for shareholders as well.

Patience Required

Lalwani cautions…

Read the rest of this article (and all my other articles) for free on Benzinga by clicking here

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and is always available on your local internet!