Updates

** Analysts at Morgan Stanley choose Australia's Orica ORI.AX and Qantas Airways QAN.AX as their top picks among the local industrials sector

** MS backs Orica's robust balance sheet, which they feel will facilitate capital management at some time in 2025

** Says the explosives maker has an attractive three-year compound annual growth revenue of 14%

** Orica shares gain 0.5% while Qantas slips 0.9%

** Brokerage notes a new earnings base has been established at Qantas and shareholder returns from capital expenditure spend are being under-appreciated

** Adds loyalty earnings are undervalued at Qantas and the flag carrier emerged post-COVID-19 in an improved competitive position

** Morgan Stanley has A$22.5 PT on ORI and sees a potential of 32% stock upside from its target

** Has A$11.5 PT on QAN

($1 = 1.5876 Australian dollars)

(Reporting by Nichiket Sunil and Rishav Chatterjee in Bengaluru; Editing by Sandra Maler and Jamie Freed)

((Nichiket.Sunil@thomsonreuters.com;))