Piper Jaffray Reiterating Overweight On CapitalSource Inc. (CSE)

Piper Jaffray is reiterating its Overweight rating and $9 price target on shares of CapitalSource Inc. CSE. In the research note, Piper Jaffray writes, "CSE shares were up 4% yesterday following a report from the dealReporter.com and subsequently from the Wall Street Journal, which quoted that "several sources" have stated that CSE has hired JP Morgan to explore strategic alternatives, suggesting it is possible the company is up for sale. We are not sure about the accuracy of the reports and CSE management is not commenting on the report, as one would expect. However, we remain very confident in the fundamental business trends at the company. We feel any strategic moves, at this point, would be from a position of strength as credit and profitability have turned the corner and liquidity is strong. We reiterate our Overweight rating and our $9 target price." Shares of CSE gained 28 cents yesterday to close at $7.33.