STOCKS NEWS EUROPE-Pearson gains; Credit Suisse upgrades

Shares in Pearson (PSON.L) take on 1.8 percent after Credit Suisse raises its rating for the publishing group to "outperform" from "neutral", mainly on valuation grounds.

The broker notes that Pearson shares have fallen 18 percent over the last quarter, underperforming the market by 24 percent with media valuations having converged as the market has tarred all media with the same brush.

Credit Suisse believes it is time to differentiate and says Pearson becomes one of its 'fallen angels' that have derated with the sector to well below historical trading ranges.

The broker says professional publishers, such as Pearson, with low expectations but minimal structural impact should perform well through the first-half reporting season.

Credit Suisse raises its target price for Pearson to 680 pence from 630.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net