Morgan Stanley Slashes Utilities; Airlines Split

Morgan Stanley swept through the US utilities sector on Friday, cutting price targets across five names. Analyst David Arcaro trimmed PPL to $39 from $42, PNW to $89 from $94, and PCG to $20 from $22. NEE also took a hit, dropping to $111 from $114. Fellow Morgan Stanley analyst Stephen Byrd cut NRG to $159 from $162.

The broad sweep suggests sector-level pressure. Valuation concerns and rate sensitivity may be weighing on the group.

Airlines told a different story. Rothschild & Co analyst James Goodall upgraded DAL to Buy with a $105 target. He cut UAL simultaneously, lowering the target to $150 from $165. DAL carries a $52 billion market cap and just 4.2% SI % of FF. Short sellers are not heavily positioned against it.

The standout single-stock call came from JP Morgan. Analyst Jeffrey Zekauskas upgraded BALL to Buy from Hold, keeping the target at $65. Ball Corporation makes aluminium packaging. Its $16 billion market cap and low short interest of 3.1% SI % of FF suggests the upgrade is not a squeeze setup — it is a fundamentals call.

Consensus targets on CSX and UNP also dipped slightly, adding to a cautious day for transport names. RDDT attracted a new analyst recommendation, with consensus holding at a Buy-leaning stance and an average target near $214.