STOCKS NEWS EUROPE-Thomas Cook rises after Barclays upgrade

Shares in holiday operator Thomas Cook (Xetra: A0MR3W - news) climb 4.6 percent, putting it among the top risers in Britain's midcap index, with traders citing an upgrade to the stock by Barclays (LSE: BARC.L - news) to "overweight" from "equal weight" as driving the move.

"While the shares have risen 300 percent since 1st January 2013, we believe there is further upside to come," analysts at Barclays write in a note.

"A further round of cost-savings and profit improvements is set to be announced on May 15 and we see upside risk to company compiled consensus forecasts."

Thomas Cook is in turnaround mode after a combination of the euro zone debt crisis, high fuel costs and political turmoil in Egypt and Tunisia brought the world's oldest travel firm to its knees in 2011.

Barclays says it expects the company to reintroduce a dividend in 2016 and forecasts an announcement will be made on the issue next year.

They accompany the upgrade with a hike in target price to 230 pence from 100 pence, against a current value of around 181.80 pence.

Reuters messaging rm://sarah.young.thomsonreuters.com@reuters.net