Honeywell Aerospace gains after Morgan Stanley ups rating to 'overweight'

** Shares of aerospace supplier Honeywell Aerospace HONA.O were up 2.03% to $164.02 in premarket trading.

** Morgan Stanley upgraded the stock to "overweight" from "equal-weight" and kept its price target at $205, which represents more than 27% upside to the stock's last close.

** The bank said the company's revenue growth is likely to be weaker than peers, but its current valuation "more than compensates" for the risks.

** The company debuted on the Nasdaq more than a month ago after it was spun off from industrial conglomerate Honeywell.

** "Against a backdrop of robust commercial aerospace and defense demand, HONA's broad installed base and sizable Commercial Aftermarket and Defense & Space exposure should limit the risk that supply chain constraints alone translate into sustained negative growth," Morgan Stanley said.

** Five of 15 brokerages rate the stock "buy" or higher, and the rest rate it "hold"; their median price target is $210, according to LSEG-compiled data.

** The stock is down 27% since its debut on June 29.