Air France KLM Stock Update

PARIS (Reuters) – Air France KLM (OTC:AFLYY) shares fell on Tuesday after Morgan Stanley cut its rating on the stock to 'underweight' from 'equal weight'.

Air France KLM shares were down around 2% in early session trading.

Morgan Stanley stated, "The shares are not expensive relative to history – as is the case for the whole of the sector – but the stock is trading at a material premium versus flag carrier peers, while the outlook for free cash flow looks very challenging to us," in a research note on the airline.