** 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

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))