Volaris downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Volaris (VLRS) to Equal Weight from Overweight with a price target of $4.40, down from $11. The firm cites heightened macro uncertainty for the downgrade. The company’s Q2 guidance suggested material downside to prior estimates, driven by weaker capacity and lower yields, the analyst tells investors in a research note. Morgan Stanley says that while capacity discipline in the market and sequentially better yield environment in the second half of 2025 are positive developments, it prefers to move to the sidelines on increased macro and yield uncertainty.