STOCKS NEWS EUROPE-Upbeat outlook drives up Telecom Plus shares

Shares in Telecom Plus Plc (LSE: TEP.L - news) rise as much as 4.5 percent, as the multi-utility provider reports growth in the third quarter and expresses confidence that its full-year results will be in line with market expectations.

The company reports net growth of 18,439 customers and 81,429 services in the three months ended Dec. 31.

Telecom Plus also reports a strong performance since the start of 2014 with a 25 percent jump in the number of new members in January alone.

The owner of the Utility Warehouse brand adds that it plans to raise its total dividend to 35 pence from 31 pence a year earlier.

"The combination of strong interims and the December completion of the acquisitions of Electricity Plus and Gas Plus Ltd has leant itself to delivering a higher growth trajectory," finnCap analyst Andrew Darley writes in a note.

Telecom Plus signed a 218 million pound ($351 million) deal to buy back the two units from Npower in November, nearly eight years after selling them to the British arm of Germany's RWE AG (Xetra: RWE.DE - news) .

"While the valuation metrics continue to test the stratosphere, this is not unusual and the ongoing positive newsflow justifies the premium rating," adds Darley.

The brokerage raises its price target to 2,000 pence and reiterates its 'buy' rating on the stock.

Shares in Telecom Plus are up 3.5 percent at 1,875 pence at 1110 GMT, making it one of the top percentage gainers on the FTSE-250 Midcap index.

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Reuters messaging rm://abhirup.roy.thomsonreuters.com@reuters.net