STOCKS NEWS EUROPE-Technip sags after UBS cuts to neutral

Shares in Technip fall more than 3 percent, the biggest losers on a slightly firmer CAC 40 index .FCHI, after UBS downgrades the French oil services group to "neutral" from "buy" although it raises its price target to 50 euros from 46 euros.

"Technip has performed strongly this year on the back of a market rally, consensus earnings upgrades, and a re-evaluation of its onshore business now the loss-making contracts are largely behind it," writes the broker in a note.

"There remain substantial risks to both pricing and order intake, and we believe that nearly all capital-intensive operations in oil services will see significant declines in margin in the next 12 months," UBS analysts add.

Technip stock has gained more than 115 percent so far this year, while the wider European DJ Stoxx Oil & Gas .SXEP index is up 20 percent since January.

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