* Shares fall after initially rising at open
* Raised 2018 guidance still on conservative side -analysts
* Faurecia shares had risen 77 pct in 2017 (Adds share price reaction, analyst comment)
By Sudip Kar-Gupta
PARIS, July 20 (Reuters) - Faurecia raised its 2018 outlook after reporting a rise in first-half profit on Friday though its shares fell as some analysts felt the French car parts maker could have been more bullish.
Faurecia, 46-percent owned by Peugeot maker PSA, said net profit rose 10.2 percent to 342 million euros ($398 million) on sales up 5.2 percent to 8.99 billion euros.
Faurecia is targeting sales growth of more than 7 percent per year to reach 20 billion euros by 2020.
The company raised its target for earnings per share (EPS) to more than 5 euros from 5 euros but stuck to its broader financial goals for 2020.
“Taking into account this strong performance, we upgrade our guidance for the year and fully confirm our 2020 financial targets as presented at our recent Capital Markets Day,” Chief Executive Patrick Koller said.
However, Faurecia shares fell 3.5 percent in early trade as some analysts said Faurecia’s 2018 outlook was still on the conservative side.
“Faurecia’s updated guidance is broadly in line with our estimates and mildly below consensus,” wrote investment bank Jefferies, which kept an “underperform” rating on the stock.
Koller said on a conference call that Faurecia’s 2018 outlook had factored in economic uncertainties impacting the global autos sector such as trade disputes involving the United States.
Faurecia shares, which surged 77 percent in 2017, are down by around 6 percent this year.
$1 = 0.8581 euros Reporting by Sudip Kar-Gupta; editing by Sherry Jacob-Phillips and Jason Neely