STOCKS NEWS EUROPE-Publicis drops after UBS downgrade

Shares in Publicis (PUBP.PA) fall 2.5 percent after UBS lowers its rating on the French advertising group to "neutral" from "buy".

The Swiss bank also lowers its share price target to 22 euros from 25 euros previously. Publicis stock remains attractive in the longer term, with earnings and momentum expected to improve towards the end of the third quarter, UBS analysts write in a research note.

"That said, given the outperformance versus peers, lacklustre H1 results and acquisition risk, we downgrade to "neutral" until better clarity on these issues emerges near-term," the note says. Reuters Messaging rm://sophie.taylor.reuters.com@reuters.net