The major bank believes that airline shares could rise by as much as 50 percent next year, according to a recent analysis.
Morgan Stanley raises its recommendation for United Airlines to overweight from previously balanced, citing that 2023 could be a golden year for the company.
"After three years of uncertainty, where the market has been either too cold or too hot, 2023 could be the year when conditions are just right and potentially deliver earnings far above market expectations," the bank writes in an analysis according to CNBC.
The bank expects demand for leisure travel to remain strong, while business travel is expected to exceed pre-pandemic levels by early 2023. International travel is also expected to recover by the middle of next year. All of this makes the risk assessment for airlines attractive even if the economy deteriorates, according to Morgan Stanley.
United Airlines rose by just over 2 percent on Monday evening on otherwise falling US stock markets. Morgan Stanley's target price is $67, which is more than 50 percent above the current price level.
Source: DI.SE
