08/12/2009 By Sarah Turner ( Source: www.marketwatch.com )

France Telecom, telecom sector cut by J.P. Morgan

LONDON (MarketWatch) - J.P. Morgan downgraded both France Telecom /quotes/comstock/24s!e:fte (FR:FTE 17.27, -0.42, -2.35%) [f: fte] and the European telecom sector to neutral from overweight on Tuesday. On the firm, the broker said that prospects for near-term revenue recovery are less obvious than for peers, the pace of cost-cutting is uncertain and one expected positive - resumed dividend per share growth - is unlikely to be announced until the second half of 2010. The sector was downgraded due to the broker's bullish outlook for equities overall a scenario "in which telecoms are only expected to perform in-line." France Telecom shares were down 1.2% in Paris on Tuesday morning.