UPDATE 1-RESEARCH ALERT-JP Morgan raises Primedia to neutral

(Recasts, adds details, share movement) Sept 23 (Reuters) - J.P. Morgan Securities upgraded Primedia Inc (PRM.N) to "neutral" from "underweight," citing the recent weakness in the consumer-magazine publisher's share price and continued growth at its Apartment Guide unit.

"Apartment Guides momentum should persist near-term. The flagship... has grown revenue the past 4 quarters, and further gains are expected in the second half of 2008," analyst Michael Meltz wrote in a note to clients.

Meltz, however, expects revenue from the company's New Home division to drop 20 percent in the second half, given the ongoing woes of homebuilders.

The analyst said while he sees few positive near-term catalysts for the company, which owns the ApartmentGuide.com and Rentals.com websites, he does not believe there is much additional downside from current levels.

Primedia shares, which have shed more than 60 percent of their value since the start of the year, were up about 4 percent at $3.04 in morning trade on the New York Stock Exchange. They touched a high of $3.29 earlier in the session. (Reporting by Vidya L Nathan in Bangalore; Editing by Himani Sarkar)