STOCKS NEWS EUROPE-WH Smith down; Q3 sales fall

Shares in WH Smith (SMWH.L) fall 2 percent after the British newspaper, books and stationery retailer reports a 4 percent fall in third-quarter underlying sales, with investors taking profits following the stock's recent good run.

WH Smith shares have gained 37 percent since its 2009 low in March, outperforming the FTSE 250 .FTMC.

Analysts say the decline in sales was better-than-expected and an improvement on the 5 percent fall in the first-half, although pointing out that travel revenues weakened slightly.

Investec Securities says the market is still undervaluing the company's fundamentals and regards the statement as reassuring

The broker says the shares currently trade on 21 percent price earnings and 22 percent EBITDA discount to the sector, "both of which undervalue the company's earnings and cash generation".

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