STOCKS NEWS EUROPE-Dairy Crest drops after in-line profits

Dairy Crest (DCG.L) shares drop 3.8 percent to 392.5 pence, handing back some of their recent strong gains, after the milk, cheese and spreads group meets forecasts with a 9 percent rise in first-half adjusted profit.

The stock had risen over a third in value since the start of September, helped by a positive trading update during that month.

JP Morgan analysts note the copany is keeping its full-year profit guidance unchanged, which they think is "cautious."

Investec analysts also describe the outlook statement as "neutral".

However, Panmure analysts are impressed by the group's cash generation and reduction of debt, and raise their full-year profit forecast to 82 million pounds from 77.5 million.

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Reuters Messaging: rm://mark.potter.reuters.com@reuters.net