BUZZ-Balfour Beatty: top of the Stoxx on Merrill upgrade

** A brighter end to a choppy year may be in store for Balfour Beatty (Other OTC: BAFBF - news) which sees major broker upgrade lift stock up 5.8 pct to be top performer among major European shares on the day.

** BofA-ML upgrades stock to a "buy" & sees another 33 pct rise from current levels over next 12 months.

** Shares (Frankfurt: DI6.F - news) down 45 pct from March peak hit by 3 profit warnings in H2 this year as weakness in UK Construction division bites.

** Healthy levels of cash on the balance sheet, undemanding valuations & confidence in a new CEO to effect a turnaround by possibly exiting some loss-making UK businesses, spur upgrade, BofA-Merrill says.

** Stock was Europe's top performer on the day last week when it re-affirmed its forecast, suggesting the worst may be over.

** BofA-ML had a "neutral" on the stock from last July before withholding its rating while it was acting as financial advisor to the company when rival Carillion (Other OTC: CIOIF - news) made an offer for the company. (RM (LSE: RM.L - news) : vikram.subhedar.thomsonreuters.com@reuters.net)