FTSE edges up towards record high, strong growth outlook boosts TUI

* Blue-chip FTSE 100 index rises 0.2 percent

* TUI (LSE: TUI.L - news) gains on hopes of meeting growth target

* Diageo (LSE: DGE.L - news) , Next (Other OTC: NXGPF - news) up on positive broker comments

By Atul Prakash

LONDON, March 25 (Reuters) - Britain's leading share index rose towards its record high on Wednesday, with tour firm TUI Group gaining on expectations of meeting its profit growth target and companies including Diageo and Next rising on positive broker comments.

TUI rose 3.2 percent, to be the top gainer in the FTSE 100, after saying it was confident of meeting a target to lift full-year underlying operating profit by 10 to 15 percent on increasing holiday sales and prices.

"It's encouraging to see that TUI is expecting good summer bookings and on track to deliver strong growth," Securequity sales trader, Jawaid Afsar, said.

"This is also a positive signal for the entire sector, which is getting some tailwind from lower fuel prices and relatively more money in the hands of consumers due to lower inflation."

Broker price target upgrades lifted shares in clothing retailer Next by 1.2 percent after Credit Suisse (LSE: 0QP5.L - news) hiked its target to 7,450 pence from 7,010 pence. Diageo, the world's largest spirits maker, gaining 1 percent after Barclays (Swiss: BARC.SW - news) raised its price target to 2,075 pence from 2,030 pence.

"The group has arguably the strongest brand portfolio in global spirits and remains well-placed to benefit from the increased penetration of international spirits brands in emerging markets," Barclays (LSE: BARC.L - news) said in a note.

The blue-chip FTSE 100 index was up 0.2 percent at 7,034.89 points by 0848 GMT. The benchmark hit a record intra-day high of 7,065.08 on Tuesday but ended down 0.3 percent.

It has gained more than 7 percent so far this year and is up about 15 percent since a low in the middle of December in 2014, helped by a strong recovery in the UK economy and a bond-buying programme by the European Central Bank.

Mid-cap Moneysupermarket.com rose more than 6 percent after the company said that its founder Simon Nixon was not proceeding with the proposed sale of shares.

(Editing by Louise Ireland)