UPDATE: Imperial Capital Upgrades Vornado Realty Trust to Outperform, Raises PT

In a report published Wednesday, Imperial Capital upgraded its rating on Vornado Realty Trust (NYSE: VNO) from In-Line to Outperform, and raised its price target from $85.00 to $87.00.Imperial Capital noted, “We are raising our rating to Outperform from In-Line and raising our one-year price target to $87 from $85 on VNO common stock. Achieving our price target, together with receipt of the current dividend, would generate a potential +14% total return over 12 months. Our revisions are predicated upon: A more proactive management approach featuring portfolio rationalization/asset sales. Following Chairman Steven Roth's ‘We will' action list (April 2012), investors have been anxious to see progress around portfolio rationalization/asset sales. There was a pick-up in investment activity through mid-year, but little/no news since. Now, we look for material sales of retail property of ~$1bn. Sales of assets such as investments in Toys ‘R' Us (Toys) and JC Penney (JCP) appear likely to take longer.”Vornado Realty Trust closed on Tuesday at $79.30.