UPDATE: ISI Group Upgrades Costco

According to a research report published this morning, ISI Group has upgraded Costco

from Hold to Buy. ISI Group said in the report, "The stock has gone sideways YTD, despite 13% earnings growth, and growing FCF that should be more highly valued in a 2% 10 yr treasury world. ISI's Hedge Fund/ Mutual Fund surveys say Consumer Staples merit a 2nd look. HF exposure to Consumer Staples is at early ‘11/ late '06 lows, while Consumer Discretionary exposure reached a record high (Ex 4). We are upgrading COST, and downgrading SPLS (Sell)." ISI Group maintains its $93 PT on Costco, which is currently trading at $83.81.