0104 GMT - Baby Bunting appears to have attractive capital deployment options for years to come, Morgan Stanley analysts say. They tell clients in a note that the Australian retailer's decision to invest A$45 million in fiscal 2026 capital expenditure paid off, with sales at its refurbished stores up 18%. Margins are wider and leverage is improved, they add. They point out that fiscal 2027 investment is being managed to ensure positive free cash flow. They see refurbishments continuing, albeit with a limit on annual capex. This pushes the rollout of new stores to fiscal 2028 and beyond, they add. MS keeps an overweight recommendation on the stock and cuts its target price 13% to 2.70 Australian dollars. Shares are down 1.6% at A$1.255.