** Shares of regional lender UMB Financial rise as much as 3.8%; last up 3% at $123.82

** Morgan Stanley starts coverage of UMBF with "overweight" rating and street-high PT of $156, a 30% upside to stock's last close

** Brokerage says UMBF is one of the best ways to play lower rates among the mid-cap U.S. banks, as its differentiated deposit base drives peer-leading net interest margin $(NIM)$ expansion

** NIM is a key measure of banking profitability

** UMBF has a collection of institutional businesses that generate deposits, which reprice quickly with short-term interest rates

** Brokerage also expects above-peer fee income growth, driven by several tailwinds across the bank's trust & securities processing business

** Seven of eight brokerages rate the stock "buy" or higher and one "hold"; with the median PT of $130, according to data compiled by LSEG

** As of last close, UMBF shares up 43.9% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))