BUZZ-MS cuts European E&P to 'in-line,' Tullow Oil to 'equal-weight'

** Morgan Stanley says with backdrop of deteriorating macro environment, it is difficult for European exploration & production companies (E&Ps) to outperform materially, downgrades sector view to "in-line" from "attractive"

** MS says no longer see valuation support for Tullow Oil to justify an "overweight" rating, downgrades to "equal-weight"

** In April, TLW downgraded its 2019 output guidance due to problems at its Ghana fields and sees final go-aheads for its Uganda in H2 while its Kenya project timeline was "ambitious"

** MS sees positives in Tullow's fundamentals, says however that delay in Ghana production attaining peak levels, delay in completion of Ugandan farm-down and in taking final investment decision in Uganda and potentially in Kenya, will all likely act as an overhang to the shares

** MS cut PTs of Tullow to 252p from 276p, Cairn Energy to 202p from 230p, Aker BP to NOK 302 from NOK 360 (Reporting By Geetha Panchaksharam)