STOCKS NEWS EUROPE-Vallourec tumbles on Cheuvreux downgrade

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10:30GMT 21Nov2008-Vallourec tumbles on Cheuvreux downgrade

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Shares in French seamless tube maker Vallourec (VLLP.PA) drop 6.4 percent, the second biggest losers on Europe's FTSEurofirst 300 .FTEU3 index, after Cheuvreux removes the stock from its "selected list" and downgrades its rating to "underperform" from "outperform", citing worries over prices in Vallourec's market.

"Vallourec's forecast of flat prices in H1-09 for OCTG products is not realistic in our view. A sharp cut is anticipated," Cheuvreux analysts write in a note.

Cheuvreux also cut its price target on the stock to 70 euros from 110 euros.

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