STOCKS NEWS EUROPE-Media stocks up on upbeat Goldman note

European media stocks rise, with the DJ STOXX European media index .SXMP up 1.7 percent, one of the best performing sectors, after Goldman Sachs issues an upbeat note on the sector, raising their price targets as well as upgrading a number of companies' recommendations.

"Following more positive macro data, we increase our 2010 forecasts by 23 percent on average," Goldman analysts say in a note.

"However, there are still significant valuation anomalies across the sector and, in addition to a cyclical recovery, structural issues remain a consideration. This means we still have a mix of preferences across the sector even as we move to using mid-cycle multiples."

The broker upgrades ITV (ITV.L) to "buy" from "sell" and adds the commercial TV broadcaster to its "conviction buy" list, while it raises Germany's Premiere PREGn.DE to "buy" from "neutral".

It also lifts JC Decaux (JCDX.PA), TVN TVNN.WA and Johnston Press (JPR.L) to "neutral" from "sell". But it cuts Telecinco (TL5.MC), Axel Springer (SPRGn.DE) to "sell" from "neutral".

Goldman reiterates its "buy" recommendations on Reed Elsevier (REL.L) and Aegis (AEGS.L).

ITV soars 9.8 percent, Premiere surges 8.2 percent, JC Decaux rises 7.2 percent, while TVN, Johnston Press, Reed Elsevier and Aegis advance between 1.2 percent and 3.1 percent. Telecinco, however, is down 1.1 percent.

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