BUZZ-Sainsbury's: 2nd-top European retail gainer on Exane hike

** Sainsbury's +2.4 pct & 2nd top Stoxx 600 retailgainer as Exane BNP Paribas says deal to buy Argos-ownerHome Retail points to greater estate overlap, synergies

** Brokerage upgrades to "outperform" from "neutral", ups TPby 12 pct to 280p on a deal it considers underappreciated

** Says whether SBRY can really grow Argos remains moot, butit can give the business more reach, broker lifts its centralsynergy forecast to £160 mln v £120 mln

** SBRY agreed this month to buy Home Retail in 1.3 bln stgdeal

** Up to Tues close, SBRY -3.6 pct YTD vs -8.7 pct Stoxxpeer index; peers Tesco - 21 pct & Morrisons' -20 pct

** 4 brokerages rate SBRY "buy" or higher, 10 "hold" and 6"sell" or lower; median PT 260p, according to Thomson Reutersdata (RM: esha.vaish.thomsonreuters.com@reuters.net)