UP - Wheel Up falls after first bear shows up on Wall Street

Wheels Up Experience (NYSE:UP) is lower in early trading after Morgan Stanley points to an unattractive risk-reward profile on the stock. Analyst Brian Nowak says the firm's deep dive into high income households and travel spending indicate that the total addressable market for Wheels Up is relatively small. "We estimate currenthousehold penetration is only 2% of 513k US households making $2.7mn+(despite UP being around for ~8 years) and see this heading to 5% by ’25, driven by expansion of offerings (cabin classes,geographies, low price flights). We struggle to get more aggressive than this without incremental adoption drivers...as in all, this translates into 18% '20-'25 CAGR user growth." The firm assigns an Underweight rating to UP with some of that growth already implied by the share price. Morgan Stanley's price target of $5.90 reps 25% downward potential. Shares of UP are down 3.09% premarket to $7.85. Morgan Stanley is the first

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Wheel Up falls after first bear shows up on Wall Street