STOCKS NEWS EUROPE-Neste hit by U.S. plan to cut biofuels mandate

Shares in Neste Oil (Other OTC: NTOIF - news) fall about 9 percent after the Obama administration late on Friday proposed cutting the country's renewable fuels targets.

Analysts say the plan by the Environmental Protection Agency to slash 2014 mandates for renewable fuels by 8 percent could hurt Neste's U.S. sales.

"This is negative for the company. It will decrease their potential for the next year in that market, and investors' expectations are going down," says Henri Parkkinen, head of research at Pohjola Markets.

Neste makes diesel from sources such as palm oil and animal fats, turned its renewable fuels business profitable earlier this year.

The company said on Monday that it supports higher mandates than are now proposed.