BUZZ-Stagecoach: top UK midcap faller on HSBC downgrade

** Train and bus operation Stagecoach falls 4.5 pct after HSBC downgrades to "reduce" from "hold"

** Broker says East Coast rail franchise, that Stagecoach won on aggressive terms, is already showing signs of weakness after one year

** Growth currently at 4 pct v HSBC's 8 pct target

** Says valuation looks undemanding at 10x fwd P/E v 12x for peer group, but adds risk of consensus downgrades if East Coast deteriorates further

** Adds Megabus Europe also weaker-than-expected

** Top faller on FTSE 250 and among most traded by average 30-day volumes

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)