STOCKS NEWS EUROPE-Redrow lifted by Citi, Panmure upgrades

Shares in housebuilder Redrow (RDW.L) advance 3.9 percent, outperforming a weaker UK mid cap .FTMC index, supported by rating upgrades from both Citigroup and Panmure Gordon.

Citigroup raises its stance on Redrow to "hold" from "sell" with an unchanged target price of 156 pence following a 15-percent fall in its share price over the last month.

The broker also lowers its risk rating for Redrow to "high" from "speculative" to reflect the company's better balance sheet position following completion of its recent rights issue.

Citigroup says while the stock does not look great value relative to its peers, at around 1.1 times net asset value, "under our benign recovery scenario the stock looks appropriately valued to us."

Panmure Gordon also hikes its rating for Redrow to "hold from "sell" with the stock having dropped 22 percent over the past 7 weeks and fallen through its unchanged 150 pence target price.

The broker says it has been a seller of Redrow for some time originally on fears over a dilutive fundraising, which has now happened, and on valuation grounds but it says the stock is now trading at fair value.

Panmure Gordon also raises its rating for peer Persimmon (PSN.L) to "buy" from "hold" with an increased target price of 549 pence, up from 535 following some share price weakness over the past few weeks.

Persimmon shares are up 0.7 percent.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net