MS cuts BCP to 'equal weight' based on stock's yearly outperformance

** Morgan Stanley cuts Banco Comercial Portugues (BCP) BCP to "equal weight" from "overweight" after the stock's significant outperformance vs the sector over the last year

** It notes BCP's shares have almost doubled in value in the last 12 months

** While the broker still sees differentiated earnings resilience, it says the bank has limited scope to distribute excess capital beyond its announced target

** "We now see less room for a potential increase in distribution targets through the strategic plan, as management anticipates RWA inflation to gradually consume the excess capital available," MS says

** It maintains a positive view on the attractive 8% yearly distribution yields, but sees limited room for unexpected benefits or increased market price

** It removes the stock from its European top picks and raises its PT to 0.58 euro from 0.57 euro