Prestige Estates has been downgraded by Morgan Stanley from an 'overweight' rating to an 'underweight' rating due to disappointing pre-sales growth.

The brokerage has also lowered its price target for the stock by 15% to Rs 1,510, indicating a potential downside of 11.5% from the recent closing price.

Morgan Stanley's downgrade is a result of Prestige Estates achieving only 29% of its FY25 pre-sales target in the first half of the fiscal year.

As a result, the brokerage has revised its growth forecast down to 9% year-on-year, which is significantly lower than the previously expected 29% growth.

Morgan Stanley also expressed concerns about the company's high capital expenditure in its IP business and its weaker pre-sales momentum compared to industry peers.