0915 GMT [Dow Jones] Exane BNP Paribas upgrades Royal Bank of Scotland (RBS.LN) to neutral from underperform. The share price has now corrected and Exane BNP sees signs of incremental stability and progress. Further sustained underperformance is less likely and the risk/reward now looks balanced, says Exane. "We now recognize an opportunity for RBS to participate in a broader sector rebound." Keeps the 50p price target, which offers 28% upside and is broadly in line with the average upside within RBS's European banks universe. Exane retains a preference for Lloyds Banking Group (LLOY.LN) and Barclays (BARC.LN), rated outperform. RBS shares are +3.1% at 40p. (andrea.tryphonides@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 06, 2010 05:15 ET (09:15 GMT)