UPDATE: Wells Fargo Upgrades NCI to Market Perform

Wells Fargo is out with its report today on NCI

, upgrading NCIT from Underperform to Market Perform. In its report, Wells Fargo writes, "Our below consensus estimates of $1.09 for CY2011 and $1.10 for CY2012 are unchanged. We remain concerned about operating headwinds facing all U.S. federal government service providers and believe all the providers in the sector face revenue and, to a lesser extent, earnings challenges in the coming quarters as award activity remains relatively light and competitive pressure intensified." At the time of posting, shares of NCIT were trading at $12.45, up 5.42% from Monday's close.