MARKET EYE-Citi raises Unitech to 'buy' after Telenor settlement

* Citigroup upgrades India's Unitech

to 'buy' from 'neutral' and raises its target price to 38 rupees from 27 rupees. * Upgrades comes after Unitech and partner Telenor

dissolve telecom joint venture Uninor, reaching a settlement on their longstanding dispute.

* The removal of the overhang makes Unitech an "attractive risk-reward" stock, while valuations are also compelling, Citigroup says in a note dated on Friday. * Unitech is seeing steady sales and new launches, while execution is showing signs of improvement, Citigroup argues. * However, bringing debt levels further will be key, the bank adds. * Unitech shares up 0.2 percent as of 0636 GMT.