Morgan Stanley cuts PT on Westpac; expects stock to underperform in 2025

** Analysts at Morgan Stanley lower PT on Australia's Westpac WBC to A$27.3 from A$29.2; maintain stock rating at "under-weight"

** Brokerage expects the banking stock to underperform in 2025

** Since WBC had a positive 2024, investors have already factored in a robust economic recovery, mid-to-high single-digit loan growth, margin expansion, on-going buybacks and higher dividends over the next two years - brokerage

** Morgan Stanley sees higher risks relating to execution in 2025 and below-average mortgage growth

** Brokerage says the lender will face headwinds in emerging markets during 2025 and has potential for higher costs

** Adds there is less conviction on capital management and a shift in sentiment and positioning; flags bank has elevated multiples

** One of 12 analysts rate the stock "buy", five "hold" and six "sell" or lower; their median PT is A$27.30, according to data compiled by LSEG

** Stock down about 7% YTD