European shares edge up led by Renault, Telecom Italia

* FTSEurofirst 300 up 0.2 pct, Euro STOXX 50 0.2 pct

MILAN, Oct (HKSE: 3366-OL.HK - news) 30 (Reuters) - European shares edged higher in opening deals on Friday, and were set for a positive close on the month, with gainers led by car maker Renault (Swiss: RNO.SW - news) after a rise in quarterly profits and phone group Telecom Italia (Other OTC: TIAJF - news) on stake building news.

The pan-European FTSEurofirst 300 index was up 0.2 percent, while the euro zone's blue-chip Euro STOXX 50 index < STOXX50E> also gained 0.2 percent.

The pan-European FTSEurofirst 300 is up more than 8 percent so far in October, as the European Central Bank has signalled the possibility of stronger stimulus measures.

Renault rose 5.8 percent after third-quarter revenue increased 9.4 percent, lifted by growing business with partners Nissan and Daimler (Xetra: 710000 - news) , as well as sales of its own new models in a rebounding European market.

Analysts at SocGen (Paris: FR0000130809 - news) and Nomura lifted their target prices on Renault to 101 euros and 107 euros respectively, both keeping a buy rating on the stock.

Telecom Italia rose sharply for a second day to gain more than 3 percent after the founder of Iliad raised a stake in the Italian telecoms group to 15 percent.

But British Airways owner IAG fell 4.6 percent despite upgrading its 2015 profit outlook after third-quarter results beat expectations.

Today's European research round-up (Reporting by Danilo Masoni; Editing by Sudip Kar-Gupta)