Morgan Stanley resumes United Spirits at 'overweight'

Reuters Market Eye - Morgan Stanley resumes coverage of United Spirits Ltd with an "overweight" rating and a target price of 3,115 rupees.

The investment bank says new owner Diageo Plc could implement a greater focus on profitable growth for the liquor maker.

Morgan Stanley says United Spirits could also focus on the "prestige" liquor segment, improving margins.

The bank also expects capital efficiencies, reduced leverage, strengthened leadership, and consistent disclosures to boost United Spirits' shares.

As of 11.07 a.m., United Spirits shares were up 4.2 percent at 2,507 rupees.

(Reporting by Abhishek Vishnoi)