** Morgan Stanley upgrades Spanish IT and defence systems maker Indra IDA.MC to "overweight" from "equal-weight," citing underappreciated defence equipment spending and potential earnings upgrades

** Broker's top-down analysis shows Spanish defence equipment spending is set to nearly double by 2030, driven by the €34 billion ($38.72 billion) Special Modernization Programs, while domestic procurement accelerates

** It forecasts the defence division will become the group's largest business by 2030

** It notes the management reset creates scope for further material M&A and the opportunity to hit 2030 revenue target as early as 2028

** Space is emerging as a structural growth driver targeting around €1 billion of revenues by 2030, while air traffic continues to deliver high-quality growth, it adds

** Out of 18 analysts that cover Indra Sistemas, 13 rate the stock "strong buy" or "buy,"​four rate "hold" and one rates the stock "sell" - LSEG data

($1 = 0.8781 euros)