India's IndusInd Bank gains after Morgan Stanley upgrade on inexpensive valuations

** Shares of private lender IndusInd Bank INDUSINDBK rise 2.6% to 730.95 rupees

** Morgan Stanley upgrades the stock to "equal-weight" from "underweight" and hikes price target to 785 rupees from 750 rupees

** New PT implies an upside of 10% from stock's last price

** Stock is down 50% in the last year, making valuations inexpensive, says Morgan Stanley

** Clarity over management after the new CEO appointment is also a positive, according to the brokerage

** INBK took a $230 million hit in fiscal year 2025 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO and deputy CEO in April

** With a new management team in place, we expect INBK to exit fiscal year 2026 with a clean balance sheet and strong coverage ratios, says Morgan Stanley

** INBK shares are down 26% in 2025 so far, compared with a 7% rise in bank index BANKNIFTY, exchange data shows