BUZZ-WPP: MS sees weak Q3

** WPP (Frankfurt: A1J2BZ - news) down >1.5 pct after Morgan Stanley (Xetra: 885836 - news) cuts rating to "equal-weight" from "overweight"

** 4-star Morgan Stanley analyst Patrick Wellington, in note, says Q3 looks tough and an early revival of confidence in the business model appears unlikely

** WPP in August cut its sales target for the second time in six months after consumer goods giants curbed spending

** MS says industry slowdown is mainly the function of low GDP growth and the FMCG (and some other sectors) pressure on marketing expense

** MS says unlikely to be early resolution to the market’s structural fears over agencies; reduces guidance and cuts forecasts

** MS sees Q3 organic net sales growth down 1.5 pct; co to report Q3 results next month

** MS trims EPS forecasts by 4 pct in 2017 and between 8-12 pct for 2018-20

** Stock bottom of FTSE 100; shares down >23 pct YTD