STOCKS NEWS EUROPE-Delhaize shares rise as lifts guidance

Shares in Delhaize (DELB.BR) jump 4.4 percent to 49.1 euros after the Belgian supermarket group raises its 2009 operating profit forecast and reassures about its ability to cope with tough trading conditions in its main U.S. market.

"Delhaize shares have been underperformers of late, largely due to nervousness on U.S. grocery trends," BofA-Merrill Lynch analysts say, pointing to a big drop in the shares of U.S. grocer Whole Foods (WFMI.O) on Wednesday after it warned 2010 profits would miss analysts' forecasts.

"For the company to have raised guidance therefore is encouraging and with an undemanding valuation (sub 10 times forecast earnings for 2010) we would expect the shares (to move) higher." For more double click on [ID:nL5378383] and [ID:nN0448591]

Reuters Messaging: rm://mark.potter.reuters.com@reuters.net