STOCKS NEWS UK-ITV shares rise on UBS upgrade

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08:11GMT 13July2009-ITV shares rise on UBS upgrade

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Shares in British broadcaster ITV (ITV.L) rise as much as 3 percent after UBS upgrades the stock to "buy" and its price target to 37 pence, saying it sees increased probability that ITV could switch to a pay-TV model from an ad-funded one.

"We believe ITV is differentiated from its peers by potential upside from the adoption of a subscription model. Our analysis suggests foregone advertising revenues would be more than offset by carriage fees from pay TV retailers," UBS writes.

British regulator Ofcom is currently conducting a review of the UK pay-TV market, which is likely to result in BSkyB's (BSY.L) having to offer its premium sport and movie content to pay-TV rivals, reducing its competitive advantage.

ITV shares are up 2.3 percent to 32.75 pence, off an earlier high of 33.5 pence, and leading the gainers in a 0.3 percent-weaker European media index .SXMP.

Reuters Messaging rm://georgina.prodhan.reuters.com@reuters.net

07:58GMT 13July2009-AB Foods down; RBS cuts to "sell"

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Shares in Primark owner Associated British Foods (ABF.L) fall 2.4 percent as RBS downgrades its recommendation to "sell" from "hold" on valuation grounds following the recent "strong" performance of its shares.