0021 GMT - Qantas Airways's valuation doesn't reflect the improving quality of its earnings, according to Morgan Stanley. Qantas trades on a FY 2027 price-to-earnings multiple of 9.8X. That's some 20% below the median of global peers despite Qantas's high returns, analyst Joseph Michael says. MS has an overweight call and A$12.80/share price target on Qantas, which is up 0.8% at A$9.42 early Friday. MS suggests Qantas's valuation doesn't reflect Qantas's pricing power and its international earnings. "We forecast FY31 Qantas International Ebit of A$1.28 billion, with the FY26 disclosure increasing our confidence in the earnings path," MS says. It notes the Perth-London route provides proof of concept for Qantas's ultra-long haul Project Sunrise program.