* FTSEurofirst 300 up 0.2 pct, Euro STOXX 50 0.2 pct
MILAN, Oct 30 (Reuters) - European shares edged higher in opening deals on Friday, and were set for a positive close on the month, with gainers led by car maker Renault after a rise in quarterly profits and phone group Telecom Italia on stake building news.
The pan-European FTSEurofirst 300 index was up 0.2 percent, while the euro zone's blue-chip Euro STOXX 50 index < STOXX50E> also gained 0.2 percent.
The pan-European FTSEurofirst 300 is up more than 8 percent so far in October, as the European Central Bank has signalled the possibility of stronger stimulus measures.
Renault rose 5.8 percent after third-quarter revenue increased 9.4 percent, lifted by growing business with partners Nissan and Daimler, as well as sales of its own new models in a rebounding European market.
Analysts at SocGen and Nomura lifted their target prices on Renault to 101 euros and 107 euros respectively, both keeping a buy rating on the stock.
Telecom Italia rose sharply for a second day to gain more than 3 percent after the founder of Iliad raised a stake in the Italian telecoms group to 15 percent.
But British Airways owner IAG fell 4.6 percent despite upgrading its 2015 profit outlook after third-quarter results beat expectations.
Today's European research round-up (Reporting by Danilo Masoni; Editing by Sudip Kar-Gupta)