STOCKS NEWS EUROPE-Mecom jumps after update; Caz upgrades

Shares in Mecom Group (MEC.L) jump 14.8 percent, topping the FTSE Small Cap .FTSC leaders board following a reassuring trading update from the newspapers group, which prompts Cazenove to raise its rating to "outperform".

Cazenove says Mecom's update reflects a better than expected end to the year with the decline in advertising rates moderating to -8 percent over Nov/Dec against an -18 percent decline for the full year.

In addition, the broker notes that Mecom's 2010 outlook is encouraging indicating broadly flat underlying revenue but EBITDA 'at least' 10 percent ahead of 2009.

"This is likely to drive significant consensus upgrades from the current broadly flat EBITDA y/y (year-on-year) assumption," Cazenove says.

"Given the better than expected results for the year, the improving advertising trends and the material discount to the peer group we upgrade our recommendation to "outperform" from "in-line"," the broker adds.

For more on Mecom's statement, double click on [ID:nLDE60C2EM]

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