** Morningstar initiates coverage on airline Virgin Australia VGN.AX, which was listed back on the ASX, with fair value at A$2.60 and a "high" uncertainty rating

** Forecasts more than A$4 billion ($2.61 billion) capex for fleet renewal over next five years

** Expects rising depreciation to constrain net profit and shareholder returns in coming years

** Brokerage expects dividends to resume in FY26

** VGN falls 0.6% to A$3.32; up 2.7% since close on relisting day

** Virgin, Australia's second-largest airline by market share, was delisted in 2020 after PE giant Bain Capital's rescue from administration

($1 = 1.5337 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((JasmeenAraIslam.Shaikh@thomsonreuters.com;))