Morgan Stanley upgrades Reliance Comm to 'overweight'

Cites company's Rs 1,200-crore fibre optic network sharing deal with the telecom unit of Reliance Industries as reason

Morgan Stanley upgrades Reliance Communications Ltd to "overweight" from "equal-weight" on the back of the company's Rs 1,200 crore fibre optic network sharing deal with the telecom unit of Reliance Industries Ltd .

The investment bank raises its fiscal 2014 earnings estimates for Reliance Comm by 125% as a result of the deal and says additional deals could cut net debt by Rs 7,700 crore.

"We see attractive valuation with limited downside," Morgan Stanley says in a reported dated April 8.