STOCKS NEWS EUROPE-Suedzucker slides on Berenberg cut to "sell"

Shares in Suedzucker (Other OTC: SUEZF - news) fall 2.2 percent in early trade, putting them among the biggest decliners on Germany's mid-cap index, as Berenberg cuts the stock to "sell" from "hold", citing the sugar producer's latest profit warning and a negative outlook for sugar and bioethanol prices.

"Suedzucker is facing a period of acute margin pressure in the near term, as we believe that prices for quota sugar will continue to decline to a level in the 500-600 euro range," Berenberg says in a note to clients. It also lowers its price target on the stock to 13 euros from 19.50 euros.

Suedzucker warned this month that it expects another drop in revenues and profits this year amid weak sugar and bioethanol prices, triggering the stock's biggest intraday drop ever.

Berenberg also lowers its price target on Suedzucker's Vienna-listed business Agrana but keeps its "hold" recommendation on the stock, saying it is less exposed to declines in sugar and bioethanol profits. Agrana shares are down 0.9 percent in early trade.

Reuters messaging rm://maria.sheahan.thomsonreuters.com@reuters.net