(Reuters) - Lehman Brothers said European professional publishers should outperform the wider media sector, should economic outlook continue to deteriorate, and upgraded Anglo-Dutch publisher Reed Elsevier (ELSN.AS: Quote, Profile, Research) (REL.L: Quote, Profile, Research).

Analyst Colin Tennant, however, downgraded Pearson Plc (PSON.L: Quote, Profile, Research) -- the world's biggest educational publisher that also owns Penguin books -- saying education markets cannot support the same revenue growth and margin potential seen elsewhere in the professional publishing sector.

Tennant also lowered his rating on news and information publisher Thomson Reuters (TRI.N: Quote, Profile, Research) to "equal-weight", and said negative sentiment related to the possible impact of the banking crisis has created upside risk to short-term forecasts.

He has an "overweight" rating and price target of 2,419 pence on Thomson Reuters (TRIL.L: Quote, Profile, Research).

However, the analyst said Thomson Reuters remained his top pick as in the longer term, the combination of market-leading positions in the capital markets, legal and tax sectors should drive superior earnings growth for the company.

Tennant has a "neutral" rating on the European media sector.

(Reporting by Vidya L Nathan in Bangalore; Editing by Himani Sarkar)