(Updates with more details, analysts)
PARIS, Oct 24 (Reuters) - Shares in French carmaker Renault surged to a six-week high on Thursday, boosted by news its Japanese partner Nissan Motor Co would contribute 900 million euros to its second-half results.
"Renault should benefit from a much stronger than expected contribution from Nissan in its second half 2002, as well as in 2003 and 2004," said Schroder Salomon Smith Barney analysts in a note upgrading Renault to "in-line" from "underperform".
At 0920 GMT, Renault shares were up 6.63 percent at 49.05 euros, while the DJ Stoxx European autos index added only 2.8 percent.
Nissan, in which Renault holds a 44.4 percent stake, said on Wednesday its first-half operating profit jumped 84 percent to 348 billion yen ($2.80 billion), while net profit for the period rose 24 percent to 286 billion yen.
"Nissan pre-announced strong first half 2002 figures, becoming the world's second most profitable automaker with an EBIT margin of 10.6 percent," SSSB said. Nissan also said it aimed to triple its annual dividend to 24 yen a share by the 2004/2005 business year.
Fideuram Wargny analyst Sebastien Caron estimated that thanks to its large stake, Renault should get 420 million euros of cash in 2004.
"(The increased dividend) will significantly increase Renault's cash generation, and unlock some of the value of the Nissan holding for Renault shareholders," Goldman Sachs analysts said.
Renault announced the Nissan contribution as it reported third-quarter sales down 2.9 percent to 7.99 billion euros, roughly in line with expectations.
Merrill Lynch, which rated Renault at a "buy" said: "The risk to our recommendation is negative sentiment towards European automotive stocks reflecting continued weakness in the European market."
"However, the launch of the new Megane II and numerous variants should provide a positive impetus to market share during 2003."
Renault, up 25 percent since the start of the year, is the only stock in Paris's blue chip CAC 40 index not to have lost ground since the start of 2002.