STOCKS NEWS EUROPE-Lufthansa up on talk of further savings

Shares in Deutsche Lufthansa (LHAG.DE) gain 1.6 percent, making them one of the top gainers among German largecaps .GDAXI, as traders and analysts point to talk the airline might push through cost cutting measures of up to 1 billion euros ($1.40 billion) this year.

Lufthansa declines to comment on market talk of further savings targets.

"According to rumours, Lufthansa plans to cut costs in an amount of 1.0 billion euros this year. Two weeks ago the company had announced a cost cutting target of 300 million euros in passenger transportation," says Equinet analyst Jochen Rothenbacher.

"In our view, intensified cost cutting would be positive for Lufthansa," Rothenbacher adds.

Banc of America-Merrill Lynch says in a client note that "further cost savings ... are being targeted with details expected at the second-quarter results." It raises its stance on the airline to "buy" from "underperform."

Reuters Messaging rm://tyler.sitte.thomsonreuters.com@reuters.net ($1=.7154 Euro)