UPDATE 2-French retailer Casino's outlook fails to win over investors

* Shares fall after initially opening higher

* Raises financial guidance, but analysts more cautious

* Casino shares still up some 15 pct so far in 2017 (Adds share price detail, comments)

PARIS, July 27 (Reuters) - A revised outlook from Casino got a cool reception on Thursday with a fall in its shares, even though the French supermarket retailer nudged up its financial guidance.

After posting a 36 percent rise in first-half earnings before interest, tax, depreciation and amortization (EBITDA) to 600 million euros ($705 million), Casino said it expected a rise of at least 20 percent in full-year consolidated trading profit.

The group said it was now expecting growth above its target of 15 percent in French food retail trading profit, and also forecast a contribution from its property development activities of around 60 million euros.

Yet Casino shares fell by more than 5 percent, as analysts and investors questioned its new outlook.

"Given the strong H1, this guidance appears conservative," Bernstein analysts wrote in a research note.

Trading profits in France, Casino's biggest market, rose 43 percent from a year ago, while earnings also improved in Brazil, which is Casino's second-biggest market.

Casino controls Brazil's top retailer Grupo Pao de Acucar and signs of an improvement in the Brazilian market came this month when Casino's French rival Carrefour listed shares in its Brazil unit.

However, analysts at Jefferies investment bank said "more clarity is needed on truly underlying Latin American margins" and kept a "hold" rating on Casino shares.

Roche Brune Asset Management fund manager Gregoire Laverne also expressed disappointment with losses at Casino's E-commerce division, adding he would not buy into the stock at present.

"The E-Commerce losses were worse than forecast," he said.

Casino shares are up around 15 percent so far in 2017, outperforming a 6 percent gain in the pan-European STOXX 600 index. ($1 = 0.8516 euros) (Additional reporting by Marianna Ciabach; Reporting by Sudip Kar-Gupta; Editing by Dominique Vidalon)