Morgan Stanley downgraded EGL Inc. (EAGL

) to underweight from equal-weight.

Analyst James Valentine believes EAGL stock reflects a quick return to profitability levels of the past, something he views as unlikely given the secular shift toward lower-cost ground transportation. He thinks EAGL stock has overshot fair valuation levels to the point where it will be tough to outperform its peers.

He notes that in a survey he recently conducted, shippers indicated an intent to continue the moving of non-emergency shipments to ground transport even when the economy improves, as visibility into supply chains advances. He says customers also say EAGL's service is deteriorating.