STOCKS NEWS EUROPE-Fraport slides on Barclays downgrade

Shares in Fraport (Xetra: FRA.DE - news) slip 4 percent in early trade to their lowest level in almost two months and making them one of the biggest decliners on Germany's mid-cap index after Barclays (LSE: BARC.L - news) cuts the stock to "equal-weight" from "overweight", citing planned investments at Frankfurt Airport.

"Although the group still has significant passenger capacity buffer at Frankfurt Airport, construction of the new terminal is going ahead ... With such significant investments in sight, we no longer see scope for the group to enhance its dividend policy," Barclays analysts say in a note to clients, although they raise their target price on the stock to 58 euros from 52 euros.

Barclays also raises Zurich Airport to "overweight" from "underweight", citing an expected new tariff framework, and Groupe Eurotunnel (Paris: FR0010533075 - news) to "equal-weight" from "underweight" on its exposure to economic growth and a potential improvement in management's capital allocation strategy.

It cuts Aeroports de Paris and SIAS to "underweight" from "equal-weight" and Flughafen Wien (Other OTC: VIAAY - news) to "equal-weight" from "overweight".

Reuters messaging rm://maria.sheahan.thomsonreuters.com@reuters.net