BUZZ-Centrica: biggest one-day rise for 5.5 yrs on Morgan Stanley upgrade

** UK energy co Centrica (LSE: CNA.L - news) rises 4.2 pct, recovering after previous session's weakness & poised for its biggest one-day gain since May 2009, as Morgan Stanley (Xetra: 885836 - news) upgrades to "overweight" from "neutral"

** Notes challenge from weaker oil and gas prices, as well uncertainty around UK general election, but says co can become compelling self-help case

** Scope to increase efficiency: reducing complexity to in line with peers would boost EPS by 20 pct, MS says

** Dividend covered by FCF in MS's bear case, projects yield of 6.5 pct in 2016

** Stock has lost 16.6 pct in last year but among best value cos in Europe, according to StarMine

** Fwd P/E 13x v 16x for peer group, dividend yield also well above 3.8 pct peer average

** Valuations table: http://link.reuters.com/tyw73w

** Peers SSE, National Grid (LSE: NG.L - news) and Severn Trent (Other OTC: STRNY - news) all rise by around 2 pct

** Centrica and SSE (LSE: SSE.L - news) both in JPM's basket of stocks to short on increased UK political risk in 2015

** Both stocks fell Monday amid Britain's opposition Labour Party pushing for domestic energy price cuts

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)