UPDATE: J.P. Morgan Upgrades Tower International to Neutral, Raises PT

In a report published Friday, J.P. Morgan & Co. upgraded its rating on Tower International

from Underweight to Neutral, and raised its price target from $8.50 to $11.50. J.P. Morgan noted, “We upgrade shares of Tower International (TOWR) to Neutral from Underweight, on modest valuation and after the firm recently announced the sale of its Korean operations, a transaction that substantially reduces leverage while simultaneously improving the margin and growth profile of the firm. Our previous Underweight thesis was predicated in part upon the firm's above-average leverage and below-average growth and margin profile. Given the underperformance in TOWR shares, and the fact the transaction ameliorates these two chief concerns, we feel a Neutral rating is more appropriate at this time.” Tower International closed on Thursday at $8.98.