Telstra's bulls at Morgan Stanley advise investors to watch for who takes a stake in smaller rival Optus. The MS analysts flag that Singapore Telecommunications is exploring the possibility of selling a minority stake in Optus to a local partner, with implications for sector asset values and competitive dynamics. A reallocation of capital by Singtel away from Optus and into faster-growing assets such as Southeast Asia data centers and digital infrastructure could also lead to increased scrutiny of Telstra's portfolio mix, they tell clients in a note. MS has an overweight rating on Telstra shares and a target price of 5.40 Australian dollars. Shares are down 1.0% at A$4.98. (stuart.condie@wsj.com)