** J.P Morgan notes European media stocks' underperformance compared to the Stoxx 600, and attributes it to investors focusing on misplaced concerns while overlooking opportunities

** It sees AI creating significant opportunities for these companies, not to cut production costs but to create more ambitious and high-value work

** The broker names RELX REL.L , Universal Music Group UMG.AS , Pearson PSON.L and Publicis PUBP.PA as its top picks in the sector,

** JPM notes Publicis has since 2019 posted 5.1% annual organic growth versus 1.7% for IPG, OMC, WPP and Havas combined, and its advantage in AI and data will be difficult to replicate

** It says although demand for AI music is limited, opportunity for UMG exists in remixes and personalized versions of popular songs, which will create licensing and revenue opportunities

** It cuts German-listed RTL RRTL.DE to "underweight" from "neutral", as it reflects the a worsening macro environment in Germany and France and expects cost savings to be accompanied by write-downs and restructuring, reducing RTL's capability to pay a special dividend

** J.P Morgan downgrades M6 MMTP.PA, which was down 3% at 0910 GMT, to "underweight", says it overpaid for the 2026 football world cup rights, which it believes will make it hard to reach break-even

(Reporting by Tristan Veyet and Leo Marchandon)

((Tristan.chabba@thomsonreuters.com))