UPDATE 1-Charter ups 2008 outlook on strong trading

(Adds detail, background, analyst comment, share price)

LONDON, May 16 (Reuters) - British engineer Charter (CHTR.L: Quote, Profile, Research, Stock Buzz) on Friday raised its outlook for 2008 on the back of strong trading so far this year and favourable currency effects.

"The board continues to expect that Charter will make further progress during 2008," it said in a trading update for the period Jan. 1 to May 15.

"In light of trading to date and the positive impact of foreign translation effects, (the board) now anticipates an outcome for the year ahead of its previous expectations."

The group did not specify its outlook further. In mid-March, at the release of its 2007 results, Charter said it viewed the outlook for 2008 with confidence.

Analysts are expecting pretax profit to grow around 14 percent to 202.8 million pounds ($395 million) this year, according to Reuters Estimates. Revenues are seen rising 13 percent to 1.64 billion pounds.

Charter shares were up 1.5 percent at 1,022 pence at 0813 GMT.

Analysts at Panmure raised their target price for Charter to 1,160 pence from 1,040 pence and repeated their "buy" recommendation.

"Investors need international growth stories to hedge the portfolio against domestic disappointments. Charter is a main contender and is seeing exceptional growth in BRIC (Brazil, Russia, India, China) economies, accompanied by upside from the energy and infrastructure frenzy," Panmure said.