Wachovia upgrades industrial REITs sector

Wachovia on Friday upgraded the industrial REIT (Real Estate Investment Trust) sector, raising it to market weight from underweight on "generally improved balance sheet strength, a solid long-term fundamental outlook via little stock currently under construction, and reasonable valuations."

"Our underweight stance was predicated on a sharp fundamental decline, which when coupled with the little capital availability and poor sheet strength, we expected valuations to move sharply lower," the firm added. "Our thesis didn't play out as expected, and with liquidity risks now largely mitigated, a neutral stance appears appropriate."