STOCKS NEWS EUROPE-Citi positive on European media sector

Citi equity strategists take a positive stance on the European media sector, arguing that media companies have better growth prospects, partly due to signs of an economic recovery in the region.

"The early signs look encouraging. Better DM (developed markets) macro trends, in particular for Europe, we think should drive better growth and continued strong EPS (earnings per share) momentum," the strategists write in a note.

Citi upgrades publisher Reed Elsevier (LSE: REL.L - news) , advertising company JCDecaux (Paris: FR0000077919 - news) and French TV group TF1 (Paris: FR0000054900 - news) all to "buy" from "neutral".

Citi adds that the European media sector has strong cash returns, and that it has a preference within the sector for professional publishing companies over advertising agencies.

The STOXX 600 European Media Index is up by 0.1 percent in early morning trade, outperforming a 0.2 percent fall on the broader pan-European STOXX 600 index.

The sector has also outperformed since the start of 2013. The STOXX 600 European Media Index has risen by around 20 percent since the start of 2013, beating a 9 percent gain on the STOXX 600 index.

Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net