STOCKS NEWS EUROPE-Mondi higher; Credit Suisse upgrades

Shares in Mondi (MNDI.L) gain 6 percent after Credit Suisse hikes its rating for the South African-based paper group to "neutral" from "underperform" with an increased target price of 240 pence, up from 190 pence, in a review of the global paper & packaging sector.

Credit Suisse revises its estimates and target prices across the sector taking into account increased risk appetite, its revised view on the long-term growth rate for graphic paper, the effects of recent foreign exchange rate moves and the broker's upgraded European economic growth forecasts for 2010.

Credit Suisse says paper shares have recovered from recent lows as economic lead indicators have improved and risk appetite has returned, although it raises a word of caution for the companies primarily exposed to graphic papers, with demand weak and a weaker U.S. dollar another unhelpful factor.

The broker downgrades Finland's Stora Enso (STERV.HE) to "neutral" from "outperform" and cuts South African-listed Sappi (SAPJ.J) to "underperform" from "neutral".

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