BUZZ- Wood Group: MS sees lack of growth

March 13 (Reuters) - ** Morgan Stanley (Xetra: 885836 - news) downgrades Wood Group to "equal-weight" from "overweight", saying a lack of organic growth means the market will maintain a discount through 2018

** Broker says co's guidance for modest EBITA growth in 2018 suggests zero organic EBITA growth once synergy benefits are factored in -- cuts PT by 22.2 pct to 7 pounds

** MS says it doesn't expect multiple expansion in near term due to limited proof of progress on the AMFW integration and organic growth

** Broker sees a negative evolution concerning the change to a restructuring/ diversified play that is proving a higher risk

** "We think headwinds for WG in 2018 are temporary and therefore we see an opportunity to unlock value. However, we think it will take time for this value to be realized with few near-term catalysts," says MS

** Broker says AMFW synergy target could be conservative, but does not expect upside risk until 2019

(Kostas.Boras@thomsonreuters.com)