STOCKS NEWS EUROPE-IMI gains; Numis upgrades

Shares in IMI (IMI.L) put on 3.2 percent, building on good gains made the previous session when the manufacturer said it would beat 2009 earnings expectations, with Numis Securities lifting its rating on the stock to "buy" from "add".

"Whilst there are challenges ahead into next year, we expect further cost benefits to protect margins," says Numis in a note.

It says in addition, IMI's strong cash performance leaves it well positioned to pursue acquisition opportunities.

Numis lifts its forecasts by 20 percent: for 2009 it now forecasts pretax profit of 205 million pounds and earnings per share of 44.6 pence, and for 2010 it now estimates pretax profit of 227 million pounds and EPS of 49 pence.

Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net