* Morgan Stanley initiated coverage of Asian Paints Ltd with an "overweight" rating and a target price of 5,220 rupees. * The investment bank says the paint maker will enjoy "strong" revenue growth, with gross margins expected to expand by 300 bps in fiscal years 2012-2015. * Asian Paints also deserves a premium in terms of valuations, Morgan Stanley says. * "We think competitors are unlikely to match its distribution reach and logistics strength over the next five years," the bank writes in a note, dated Thursday. * "And we believe valuations should be viewed in the context of earnings resilience, improving return ratios, better payout ratios, and successful innovations," Morgan Stanley adds. * Asian Paints shares up 0.8 percent at 4,311.50 rupees.