** Shares in Telecom Italia (TIM) TLIT.MI rise over 2% on the back of better prospects for its key fixed-line domestic business and potential developments on single-network project with Open Fiber ** Kepler Cheuvreux sees room for the stock to double its value over the course of the phone group's business plan to 2023, rates the stock with a buy and raises its target price to 0.75 to 0.70 euros ** Kepler points to recent improvement in all business lines in Italy and Brazil with better customer take-up and pricing, providing visibility on return to growth and free cash flow generation ** The broker adds further value could be created mainly through a merger of TIM's landline network assets with those of rival broadband firm Open Fiber, which could unlock 5 billion euros of value ** Stock could benefit from a recovery in TIM's fixed line business, a Milan-based trader says, adding government will need to tackle the single network issue ** Stock has sharply underperformed both Europe's telecoms sector index .SXKP and Milan's blue-chip index .FTMIB in the past 12 months, dropping by around 17.6% while the industry index was down by 9%. ** Telecom Italia's shares rise 2.4% by 1000 GMT, versus a 0.14% fall in the European telecoms index .SXKP <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Telecom Italia stock perfomance https://tmsnrt.rs/3rfPBlp ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Elvira Pollina, Maria Pia Quaglia, editing by Giulia Segreti) ((elvira.pollina@thomsonreuters.com))