UPDATE 2-Infineon Q3 beats estimates, raises outlook again

* Says sees FY sales growth mid-high 40's percentage

* FY EBIT margin seen in low-teens percentage

* Increases investment target to more than 400 mln euros * Shares gain 2.3 pct, German DAX flat

(Adds analyst, trader comment, share price)

By Nicola Leske

FRANKFURT, July 28 (Reuters) - German chipmaker Infineon (IFXGn.DE) raised its full-year outlook for the second time in three months thanks to third-quarter results that beat expectations and an improving outlook for the chip industry.

"We have come a long way in improving profitability and are now beginning to take aim at our ambitious goal of 15 percent [operating margin]," Chief Executive Peter Bauer said in a statement on Wednesday.

Its shares rallied on the news, gaining 2.3 percent by 0955 GMT, making it the second biggest gainer in a flat German blue-chip DAX index .GDAXI.

Infineon, whose chips can be found in mobile handsets from Nokia (NOK1V.HE) to Apple (AAPL.O), was fighting to survive early last year but has turned itself around thanks to tough cost cuts, assets sales and a capital increase.

Benefitting from a rebound in the industry that also boosted results from chipmaker Intel (INTC.O) and chip equipment maker ASML (ASML.AS), Infineon again raised its outlook for its fiscal year which ends Sept. 30.

It now expects full-year revenues to grow by a "mid to high 40's" percent rate -- at an assumed rate of 1.30 euros to the dollar for the last quarter of the 2010 fiscal year -- and a full year margin in the low teens.

In April, Infineon increased its outlook and forecast year-on-year sales growth in the "high 30s" percentage rate with a full-year margin of more than 10 percent.

The Munich-based chipmaker also increased its investment target to more than 400 million euros ($516.4 million) for the current fiscal year, up from more than 300 million euros previously.

"Hats off since they not only delivered excellent numbers but also raised their outlook," said a trader, adding that the company's shares -- currently at 5.2 euros -- could rise to the 6.30 euro mark over the next weeks.

Third-quarter revenues were 1.21 billion euros and operating profit was 163 million euros, beating analyst estimates.

In the current quarter Infineon forecast high single-digit sequential sales growth and a rise in operating margin of 1-2 percentage points.

DZ Bank analyst Harald Schnitzer called the results an "impressive set of figures" and said the upswing was "driven by the economic recovery, improved demand in the supply chain as well as at end customers as well as favourable currency development".

He added that he expected Infineon's strong performance to to continue but that "growth momentum will come down".

Spun off from engineering group Siemens (SIEGn.DE) more than a decade ago, Infineon has four divisions -- Automotive, Wireless Solutions, Industrial & Multimarket and Chip Card & Security.

Infineon stock trades at 12.2 times 12-month forward earnings, according to Thomson Reuters StarMine, which weights analysts' forecasts according to their track record.

By comparison, rival STMicroelectronics (STM.PA) trades at 10.2 times 12-month forward earnings and Texas Instruments TXN.N at 10 times. ($1=.7746 Euro) (Editing by Simon Jessop)