Italy's Salvatore Ferragamo rises on GS upgrade, traders' short covering
** Shares of fashion group Salvatore Ferragamo SFER.MI rise 5.9% as Goldman Sachs upgrades to "neutral" from "sell" and on short covering by traders
** GS notes Ferragamo has underperformed YTD, falling 37% compared to a 5% decline in the sector, and therefore expects limited downside from current levels
** The low stock price could lure investors' interest for potential M&A deal, broker says
** GS highlights potential upsides, including elements of Ferragamo's creative strategy such as investment in newness and brand reposition
** A Milan-based trader says the stock was included in some short covering strategies, meaning some traders bought the stock they had previously borrowed to close out their short positions
** He adds the stock is very sensitive to market elements as it has been trading very low recently
** On Friday, Ferragamo touched its 52-week low of 7.76 euro per share
** Ferragamo is among the best performers on Italy's all-share index .FTITLMS, which is up 0.6%
Reporting by Alberto Chiumento, Andrea Mandalà
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