Morgan Stanley would be buyers of weakness in Delta after Q1 update

Morgan Stanley says the firm would be buyers of weakness in Delta Air Lines (DAL) and other airline stocks following the company’s Q1 guidance update, but with “some caution around macro/geopolitical developments and overall market sentiment.” The update talking about corporate and consumer demand destruction from macro uncertainty was “worse than we were expecting,” but the unchanged fiscal year guidance implies the risks are indeed somewhat transitory, although the market will need to see evidence of inflection and more action around Q2 capacity reduction “before buying back in again,” says the analyst, who has an Overweight rating and $100 price target on Delta shares.