Wells Fargo Upgrades CapLease to Outperform

Wells Fargo is out with its report today on CapLease LSE, upgrading LSE from Market Perform to Outperform. In a note to clients, Wells Fargo writes, "Upgrading LSE to Outperform from Market Perform based on valuation. We believe the total return potential exceeds potential downside risks. YTD, LSE shares are down 22% on a total return basis compared to +2% for the Net Lease group and +15% for all REITs. Specifically, LSE shares are off 9.5% over the past week vs. +1.2% for the RMS. We believe most of the relative underperformance has been due to lingering concern over re-leasing several industrial properties with 2012 expirations and general risk aversion to smaller-cap, higher leveraged stocks like LSE in light of continued macro uncertainty." At the time of posting, shares of LSE were trading at $4.50, up 3.21% from Tuesday's close.