** Morgan Stanley initiates coverage on Australia's Myer Holdings MYR.AX with an "overweight" rating and a price target of A$1.10

** Says it thinks apparel market is underestimating Myer's ability to restore growth and profitability

** Brokerage sees pathway for MYR stock to double

** Myer, an Australian department store operator, acquired in January Premier Investments' PMV.AX apparel brands in exchange of stake in MYR

** MYR is in the early stages of a major turnaround and integrating the apparel brands. Execution risk is high. But if it succeeds, we think the share price can more than double — Morgan Stanley

** One of two analysts rate the stock "buy" or higher, one "hold"; their median PT is A$1.05 — LSEG data

** Stock has fallen 37.4% this year, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))