UPDATE: ISI Group Downgrades Progress Energy to Sell

ISI Group lowers its rating on Progress Energy

to Sell from Hold reflecting uncertainty on the Duke Energy merger. Price target is $47 ISI Group notes, "If the pending merger with Duke Energy fails to close we see near-term downside to $46-47/share for PGN. If the merger closes, the stock should rise to $53-$54 (2.6125x the DUK share price). We are uneasy with this risk/reward given remaining regulatory uncertainty." PGN closed at $51.53 on Friday.