STOCKS NEWS EUROPE-Johnston Press higher; Numis upgrades

Shares in Johnston Press (JPR.L) gain 2.9 percent as Numis Securities ups its rating for the newspaper publisher to "buy" from "hold" in a preview of upcoming trading updates from the firm and peer Trinity Mirror (TNI.L).

Numis points out that the regional newspaper industry has been hit hard by cyclical and structural issues, exacerbated by pension concerns, for Trinity Mirror, and inappropriate capital structures, for Johnston Press.

The broker says its upgrade for Johnston Press is in anticipation of stabilisation in some classified advertising verticals in the interim management statement, scheduled for Wednesday November 11, and a likely rights issue.

Numis says, although Johnston Press is structurally challenged, it believes that the downturn in the sector's revenues has been overwhelmingly cyclical and it would be supportive of a rights issue by the group "where a suitably geared business would look attractively valued considering the recovery potential."

The broker repeats its "add" rating on Trinity Mirror, up 0.1 percent, ahead of the firm's interim management statement due on Thursday November 12.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net