Wall Street Is Starting to Sour on Airline Stocks After a Big Rally

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Wall Street is starting to sour on airlines.

Deutsche Bank

downgraded the entire airline sector to a Hold from a Buy on Friday. After a historic rally in recent weeks, pushing the sector up 38%, the stocks are now pricing in two years of earnings growth, according to analyst Michael Linenberg. While he raised price targets across the board—reflecting the stock’s recent surge—he thinks the sector is now trading at or near “fair value,” based on 2022 estimates and in some cases 2023 forecasts.

UBS

got slightly more bullish on the sector, upgrading

Alaska Air

(ticker: ALK)…