BUZZ-B&M: RBC upgrades, adds to large cap best ideas list

** Shares in British discount retailer B&M European Value Retail up >2 pct after RBC upgrades co to "top pick" from "outperform"

** RBC adds co to its European Equity large cap best ideas list, maintains PT of 400p

** RBC says B&M has reached an inflection point, expects stronger LFL sales performance in Q4 and into FY 2020, driven by improved general merchandise ranges, particularly in homewares

** Says expects co's expansion into frozen/chilled categories may lead to lower gross margins or higher capital intensity

** "We believe B&M will continue to look for UK and international expansion opportunities in the medium term (international is c.10% of group sales) and return any surplus cash to shareholders as special dividends" - RBC

** RBC says its consumer surveys suggest positive consumer trends for co's dominant UK business

(Reporting By Geetha Panchaksharam)