STOCKS NEWS EUROPE-Cegedim rises on covenants agreement

Shares in Cegedim gain more than 6 percent, the biggest riser on France's CAC mid and small index after the French healthcare software developer says it has reached an agreement with lenders to adjust its bank covenants.

"Before this announcement, we felt that Cegedim had only little room to respect its bank covenants. Now, its room for manoeuvre is clearly more important," analysts at Gilbert Dupont wrote in a note.

"We think that Cegedim's risk profile has improved following the announcement," the analysts added, upgrading the company's stock rating to buy.

Cegedim shares have dropped 6 percent since the start of the year, valuing the company at 223 million euros.

To see a statement, please click Reuters messaging rm:// (Reporting by Alice Cannet)