BUZZ-Rusagro: Set for worst day in 6 mths as UBS cuts to "neutral"

** Shares (Berlin: DI6.BE - news) of Russian agricultural company Rusagro fall 3.6 pct, on track for their worst day in 6 mths, after UBS cuts to "neutral" from "buy"

** UBS (LSE: 0QNR.L - news) says meat segment growth and profitability are now priced in

** Broker says co faces challenges from current drop in sugar price, which is more pronounced than UBS previously anticipated, and drop in grain prices

** UBS also sees negative effect on group after some hurt to meat volumes from African swine fever

** However, broker also cites Rusagro's business diversification and potential export-driven growth opportunities

** UBS points out that co has "a natural hedge against potential rouble depreciation and attractive dividend story"

** UBS ups PT by 3.3 pct to $12.70; says it would increase its valuation by $4/GDR in case meat export is allowed to China and co builds second and third stages of Far (Hamburg: FA6.HM - news) -East Project