Shares of American Airlines (AAL) - Get Report were downgraded today by Morgan Stanley to "Equalweight" from "Overweight" with a price target of $44, down from $52.

Said analyst Rajeev Lalwani: "While we believe the narrative still has legs with the maturation of cabin segmentation, we believe there will be offsets from industry dynamics...First and foremost, the airline is one of the more cyclically leveraged plays, having the weakest margins and the highest debt profile amongst our coverage."

American Airlines stock is down 1.78% to $39.70 in premarket trading.

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