STOCKS NEWS EUROPE-German Steel up, Goldman lifts targets

Shares in German steel producer Salzgitter (SZGG.DE) rise 1.2 percent and those in its larger peer Thyssenkrupp (TKAG.DE) gain0.5 percent, as Goldman Sachs lifts its price target for both companies in a steel sector note.

The brokerage raises its target for Salzgitter to 79 euros per share from 56, keeping its "buy" rating, and raises Thyssen's target to 21 euros per share from 16, reaffirming its "sell" rating.

Goldman Sachs says that both companies, along with other steelmakers, should see a return to pre-recession production levels by 2011.

In the steel sector review the brokerage also downgrades its stance on Finland's Outokumpu (OUT1V.HE) to "sell" from "neutral", and cuts its rating for France's Vallourec (VLLP.PA) to "neutral" from "buy".

Goldman Sachs raises its rating for Austria's Voestalpine (VOES.VI) to "buy" from "neutral".

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