** 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;))
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