* Shares rise 4 percent, pare some gains later
* Goldman Sachs upgrades to "neutral" from "sell"
* Goldman says sales should rise 4 pct in 2014, 8 pct in
(Adds quotes from analyst note, further share move)
MILAN, Feb 6 Shares in Italian luxury shoemaker
Tod's reversed recent losses on Thursday after Goldman
Sachs upgraded the stock to "neutral" from "sell" and predicted
sales would rise over the next two years.
The stock rose over 4 percent in early trade, giving back
some gains to be quoted at 99.95 euros at 1122 GMT, 2.8 percent
higher on the day.
A Milan-based trader put the rise down to a Goldman Sachs
report dated Feb. 5., in which analysts upgraded the stock
following significant weakness in the shares after full year
2013 sales figures.
Shares in the maker of 300-400 euro ($410-$540) leather
loafers fell more than 7 percent on Jan. 30 after the company
posted full-year revenue below market expectations. Analysts had
questioned the group's ability to boost sales outside Europe and
branch out into higher-margin products.
Goldman Sachs analysts said Tod's should be able to grow top
line revenue, "at a slower rate than some of its soft luxury
peers", by 4 percent in 2014 and 8 percent in 2015.
By comparison, consensus estimates for peer Salvatore
Ferragamo point to 2014 sales growing nearly 8
percent, before accelerating a further 9.7 percent in 2015.
Tod's sales will be driven by the French shoe brand Roger
Vivier which should see 33 percent compound annual growth over
2013-2017, Goldman Sachs said.
However, the analysts said Tod's is unlikely to increase its
profitability margin over the next two years, due to competitive
pressure and the rising cost of operating stores.
($1 = 0.7390 euros)
(Reporting by Isla Binnie; Editing by Elaine Hardcastle)