Air France KLM shares fall as Morgan Stanley downgrades stock

Air France KLM 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. "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," it wrote in a research note on the airline.<br/>