UPDATE: Stifel Upgrades CommonWealth REIT to Hold on Review of Expected Outcomes

In a report published Tuesday, Stifel analyst John Guinee upgraded the rating on

from Sell to Hold. In the report, Stifel noted, “We are expanding our range of expected outcomes and upgrading CommonWealth to Hold, from Sell. Possible scenarios include 1) a clean Corvex/Related (C&R) victory, a top notch Board and C suite, and a liquidation strategy the Street endorses ($25.00/sh or a 7.8% Cap Rate), 2) a clean C&R victory and a less than stellar, grind-it-out management team ($22.00/sh or a 8.4% Cap Rate), 3) a CWH/RMR victory, but with negotiated changes such as an expanded Board and a new C suite ($20.00/sh or a 8.8% Cap Rate), and 4) a CWH/RMR victory with RMR as internal manager or business as usual ($18.00/sh or a 9.3% Cap Rate). Also possible, now would be a good time for all parties to negotiate a settlement (scenario 5). Perhaps splitting the company (portfolio) would be an elegant solution with C&R essentially controlling the less desirable assets. We would not be surprised to see this happen.” CommonWealth REIT closed on Monday at $22.83.