STOCKS NEWS EUROPE-Metro falls after JP Morgan cuts target

Shares in German retailer Metro (Toronto: MRU.TO - news) fall about 2 percent as traders point to JP Morgan (Other OTC: JPYYL - news) cutting its price target to 24 euros from 28 euros, maintaining an "underweight" rating.

The change is triggered by the delay of the stock market listing of a quarter of its Russian cash-and-carry wholesale operation - which had been expected to fetch at least 1 billion euros ($1.38 billion) - due to the Ukraine crisis.

"After very weak Q1 results from a cash flow point of view, we review the company's alternatives to reducing leverage and conclude they do not unlock value, are dilutive to EPS or strategically unattractive," JP Morgan analyst Jaime Vazquez writes in a note.

Metro shares are down 1.9 percent at 28.09 euros at 0842 GMT, making them the biggest loser on the German mid-cap index, while the European retail sector rises 1.6 percent.

Metro Chief Executive Olaf Koch told Reuters in an interview published on Tuesday that the planned initial public offering had been well received by investors and should still proceed if the turmoil in Russian markets abated.

Reuters Messaging: emma.thomasson.thomsonreuters.com@reuters.net