STOCKS NEWS EUROPE-St Modwen up; Numis starts with "buy"

STOCKS NEWS Reuters Results diary

Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

11:53GMT 21Nov2008-St Modwen Properties up; Numis starts with "buy"

-------------------------------------------------------------------

Shares in St Modwen Properties (SMP.L) surge 19.6 percent, extending gains made on Thursday when the real estate developer said it will be in full compliance with its banking covenants at Nov. 30, with Numis Securities initiating coverage as "buy".

"[We argue] that the shares have been oversold as the market has focused on a breach of banking covenants which the group has now renegotiated giving materially more headroom," says Numis in a note.

"The portfolio of properties the group holds is large and diverse (and importantly has a stable rent roll) and is prudently valued," adds the broker, which initiates the company with a 171 pence price target.

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

11:22GMT 21Nov2008 - Atlantia down on possible toll freeze  Continued...