J.P. Morgan upgrades Rockwell Automation to 'neutral' as profit margins rise

J.P. Morgan upgrades Rockwell Automation ROK.N to 'neutral' from 'underweight'; raises PT to $271 from $201

Although the overall economic situation is still challenging and not showing significant improvement, company profit margins are increasing - brokerage

ROK shares up 2.46% at $290.14 in premarket trading

Co raised its annual profit forecast on Wednesday after cost cuts helped boost margins in the second quarter

"ROK still expects normalized incrementals in the 35% range, though we think they can post above average incrementals if and when the cycle actually turns" - JPM

Avg rating of 29 analysts is "buy"; median PT is $295 — data compiled by LSEG

As of last close, ROK up ~1% YTD