Fiat raises profit forecast; Analysts see its net even higher this year, but some worry.

Byline: Luca Ciferri

After a strong first quarter, Fiat Auto is raising its full-year operating profit expectations to [euro]200 million.

But at least one financial analyst warns that the Italian automaker's budding recovery is not yet secure and more trouble may be ahead.

"The next quarters are likely to get tougher because the Grande Punto faces increasing competition in the second half of the year," said Stephen B. Cheetham of Bernstein Research in London.

He said the Punto's strong first quarter of 100,000 sales came as other new competitor models such as the Opel Corsa, Peugeot 207, Renault Clio and Toyota Yaris were not yet available. …