STOCKS NEWS EUROPE-Spectris shares fall on broker downgrade

Shares in electrical engineering company Spectris Plc (LSE: SXS.L - news) fall as much as 4.5 percent after a rating downgrade by Bank of America Merrill Lynch on valuation grounds.

The U.S. bank highlights that Spectris' shares trade at a premium in an already expensive European capital goods sector.

Spectris , which makes testing and control equipment for mining, oil and gas, pharmaceuticals and transportation industries, was trading at 2,399 pence at 1105 GMT, making it one of the top percentage losers on the FTSE 250 midcap index.

Bank of America Merrill Lynch downgrades Spectris to "underperform" from "neutral".

It writes in a research note that "unlike last year, markets should be accelerating through H1, which the company should benefit from, but with valuation up to relative highs (in an already expensive sub-sector of euro capital goods), we downgrade to 'underperform'."

Reuters messaging rm://aashika.jain.thomsonreuters.com@reuters.net