J.P.Morgan upgrades Ecolab to 'overweight', says raw material cost risks overstated

J.P.Morgan upgrades water solutions company Ecolab ECL.N to "overweight" from "neutral"

Brokerage wants to "Overweight" larger capitalization companies "with good balance sheets as they may outperform in a more difficult operating environment"

Adds, ECL is taking steps over a multi-year period to manage its business with increased efficiency and at lower cost

ECL's share price has moved lower in recent weeks "due to perceived risks of earnings growth erosion from higher raw material costs", which the brokerage believes are likely misplaced

Brokerage says materials companies are positively sensitive to de-escalation in the Mideast because of benefits from less raw material inflation and less diminished rates of economic growth

17 out of 27 brokerages rate the stock "buy" or higher and 10 "hold"; median PT is $326 - LSEG data

As of last close, ECL down 0.5% YTD