STOCKS NEWS EUROPE-Landi Renzo up after upgrade

Italy's Landi Renzo (LR.MI), a leading producer of liquefied petroleum (LPG) and methane fuel systems for cars, is higher after BofA-Merrill Lynch upgrades the stock to "buy".

The broker says profitability at the group is close to historical levels driven by cost-cutting and efficiency gains.

"Demand should continue to accelerate based on LPG/CNG's proven green credentials and supported by a recovery in auto sales and a positive oil price outlook," the broker says in a note.

CNG stands for compressed natural gas.

The broker, which believes car incentives in Italy will remain in 2010, says it thinks the company will soon enter the U.S. fleet market which is already taking off.

At 1215 GMT, Landi Renzo shares are up 3.33 percent at 3.1 euros. The FT Italian All Share index .FTITLMS is down 0.68 percent.

Reuters Messaging rm://stephen.jewkes.reuters.com@reuters.net ($1=.7063 Euro)