STOCKS NEWS EUROPE-Peugeot surges on raised outlook

Shares in PSA Peugeot Citroen (PEUP.PA) surge 5.3 percent to hit a 13-month high after the French car maker raises its full-year outlook on the back of an improvement in the auto market and the success of models such as the C4 Picasso.

"Peugeot is a nice positive surprise, investors are pleased. This confirms that there's a real turnaround in the auto sector," a Paris-based trader says.

The company says it is revising its 2009 forecasts "significantly" upwards and now expects recurring operating income for the second half to be at break-even.

Peugeot's CEO Philippe Varin is due to unveil his long-term plans for the group to investors later on Thursday.

The stock is up 105 percent so far this year, rebounding from a dismal 2008. Rival Renault (RENA.PA) is up 72 percent in 2009, while Daimler (DAIGn.DE) is up 30 percent and BMW (BMWG.DE) is up 55 percent.

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