BUZZ-ITV: "very attractive" valuation prompts MS upgrade
** British broadcaster's shares +2.5 pct after Morgan Stanley (Xetra: 885836 - news) upgrades stock for first time in over a year
** MS, rated 5 stars for recommendation accuracy on ITV (Frankfurt: A0BLQP - news) by StarMine, raises rating to "overweight" from "equal weight"
** MS cites "very attractive" valuation; says ITV was early into the advertising downturn and that its impact is largely discounted in shares
** "Typically the right moment to buy TV stocks is when advertising starts to improve... at ITV, Q2 2017 (and June in particular) should mark the low point" - MS
** MS expects studios business to revert to organic growth in 2017 and 2018 and co's audience numbers to remain robust amid strong growth in video advertising revenues
** MS PT of 230p implies 30 pct upside potential from stock's Thursday close of 176.9p
** Stock top of FTSE 100 & second-top riser on Stoxx 600 in decent volume (Reuters Messaging: tenzin.pema1.thomsonreuters.com@reuters.net)