Surging Boeing shares downgraded by Morgan Stanley because plane orders are likely to remain 'light'

Boeing Dreamliner 787 planes sit on the production line at the company's final assembly facility in North Charleston, S.C.
Travis Dove | Bloomberg | Getty Images

Shares of aircraft maker Boeing, which have jumped nearly 25 percent since the election, were downgraded by Morgan Stanley on concerns about the pace of future plane orders and valuation.

"With BA shares up 40 percent since mid-2016 and our view on the underlying earnings potential largely unchanged, we believe there is now more balance in the risk-reward outlook," wrote analyst Rajeev Lalwani, who lowered the stock to equal weight from overweight in the note to clients Monday.

Boeing shares have surged on the hope that President Donald Trump will boost the prospects for big industrial exporters through tax cuts and other measures. Trump held a speech touting his "America First" message at a Boeing plant in South Carolina last month.

But the company's core business still faces some risks, Morgan Stanley believes.