Morgan Stanley has downgraded Prestige Estates Projects to Underweight (UW) from Overweight, slashing the target price to ₹1,510 from earlier levels. Despite delivering a stellar 63% pre-sales growth in FY24, the brokerage has reduced its FY25 pre-sales growth estimate to 9% YoY (previously 28%) due to subdued sales performance in 1HFY25, achieving only 29% of its full-year target.
The relative downgrade also factors in high capex requirements for the company’s income-producing (IP) business and weaker pre-sales momentum compared to peers. Prestige’s performance will likely be overshadowed by other real estate players in the near term.
