MS cuts Lufthansa on high exposure to corporate and longhaul
** Morgan Stanley cuts Lufthansa LHAG.DEto "underweight" from "equal weight" saying its exposure to the less consolidated long-haul market and a challenging growth outlook for corporate demand may mean it cannot fully benefit from its tight European widebody capacity
** Stock down 0.4% by 0756 GMT
** The broker sees Lufthansa's high exposure to corporate travel as a persistent issue, with a low outlook for growth and high cyclicality in the segment
** Higher capacity growth in Lufthansa's key markets has been accompanied by weak fare data, which MS sees as a risk that Lufthansa's revenue per available seat kilometer will underperform in comparison to its flag carrier peers
** Higher staffing costs and slowed growth pose risks to Lufthansa's near-term revenues, the broker says
** Outof 22 analysts covering Lufthansa, six rate the stock "buy" or "strong buy", 12 rate it "hold" and fourrate the stock "sell" or "strong sell"
Reporting by Bernadette Hogg
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