UPDATE: ISI Group Upgrades Progress Energy to Hold on Merger Prospects

ISI Group raises its rating on Progress Energy

from Sell to Hold and increases its price target to $54.75 as the company's merger with Duke Energy

gains regulatory approval. ISI Group notes, "We now believe the merger will close and are raising our rating from Sell to Hold. Our target price has been raised to reflect our 12 month target price for the shares of Duke Energy multiplied by the exchange ratio of 2.6125 DUK shares for each PGN share." PGN closed at $57.53 on Friday.