STOCKS NEWS EUROPE-Raiffeisen rises 4.6 pct on Citi upgrade

Shares in Raiffeisen International (RIBH.VI), emerging Europe's No.2 lender, rise as much as 4.6 percent to 24.88 euros, making them one of the top gainers among European banks, after Citigroup raises its investment opinion to "buy" from "sell", while at the same time downgrading Austrian peer Erste Group Bank (ERST.VI) to "sell" from "hold".

Erste shares lose in early trade but turn positive later to trade up 0.6 percent at 18.15 euros, underperforming the DJ STOXX European banks index .SX7P.

"We see value emerging in Raiffeisen International shares following their recent poor performance ... and expect the bank to also secure non-dilutive capital support from its parent if needed," Citigroup analyst Simon Nellis says in a note to clients.

"While Erste may yet face Austrian 'hidden danger' we think the risk of Raiffeisen's exposure is largely priced in by the market," Nellis says.

Reuters Messaging rm://boris.groendahl.reuters.com@reuters.net