Grupo Aeromexico initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Jens Spiess initiated coverage of Grupo Aeromexico (AERO) with an Overweight rating and $30 price target The firm thinks the company’s earnings potential is being underappreciated by the market. Aeromexico trades at a discount to its full-service peers, which is unwarranted, given the airline’s profitability will expand next year as demand recovers and the “premiumization” trend continues, the analyst tells investors in a research note.