STOCKS NEWS EUROPE-Technip drops as Merrill cuts

STOCKS NEWS Reuters Results diary

Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

11:38GMT 27March2009-Technip drops as Merrill cuts to "neutral"

--------------------------------------------------------------

Shares in French oil services company Technip (TECF.PA) fall 4.7 percent, underperforming the European oil sector .SXEP which is down 0.7 percent, after Merrill Lynch cuts its rating on the stock to "neutral" from "buy". "Year-to-date, Technip has strongly outperformed the sector," writes the broker, which points the stock's 31 percent performance against the European oil services sector average of 12 percent this year.

Reuters Messaging rm://michel.rose.reuters.com@reuters.net

11:31GMT 27March2009-SIG falls as RBS cuts to "hold"

----------------------------------------------------

Shares in insulation and roofing materials group SIG (SHI.L), fall 4.8 percent as Royal Bank of Scotland downgrades its rating to "hold" from "buy" and slashes its target price to 114 pence, from 435 pence, saying downside risks remain.

The company recently raised 325 million pounds by selling new shares.

"The group's equity raising, while dilutive in size and form, has reduced financial risk," says RBS in a note. It says a price-earnings valuation of 11.8 times based on 2010 profits "looks broadly fair, but this is dependent on further cost savings and downside earnings risks remain".

It says attention will now switch from the balance sheet to weakness in the group's construction markets.

Citigroup also lowers its target for SIG on Friday, to 120 pence, from 173, keeping its "hold" rating.

Reuters Messaging rm://brian.gorman.thomsonreuters.com@reuters.net

11:25GMT 27March2009-Solaria off highs; China cheer overdone

------------------------------------------------------------