BUZZ-MS ups Leonardo to 'overweight', says aerostructures restructuring key

** Shares in Italy's Leonardo LDOF.MI are up 1.6% after Morgan Stanley upgrades to "overweight" from "equal weight" citing the defence firm's restructuring focus on its aerostructures business

** The broker expects more details with the industrial plan update scheduled for March 11, which is a key catalyst

** Leonardo's aerostructures business burned over 1 billion euros ($1.03 billion) over 2020-24, mainly due to constrained Boeing BA.N 787 shipset demand, the brokerage says

** Achieving a breakeven in 2025 could add 200 million euros to MS's EBITA estimates over the next three years, it adds

** MS says the aerostructures restructuring effort includes a potential spin-off with industrial or financial partners

** The pressure on European NATO members to increase defence spending by the incoming United States administration is another potential upside for Leonardo, as Italy's NATO spending is significantly below the current target of 2% of GDP

** Out of 16 analysts that cover Leonardo, 13 rate the stock "strong buy" or "buy", ​two rate "hold" and one "sell"

($1 = 0.9713 euros)

(Reporting by Philippe Leroy Beaulieu)

((Philippe.leroybeaulieu@thomsonreuters.com))