UPDATE: ISI Group Upgrades Bank of America from Hold to Buy on Operating Cost Savings

ISI Group raised its rating on Bank of America BAC from Hold to Buy and raised its price target to $12. ISI Group noted, "Our change of heart is based on three main factors: 1) BAC has built its capital ratios rapidly and will be able to buyback stock much sooner and more robustly than we expected; 2) we now have more confidence that operating cost savings will be realized about in line with expectations; and 3) we are gaining confidence that BAC is getting its arms around its mortgage repurchase risk, and that future charges will be manageable and easily digestible (i.e. they won't change the “story” of the stock or the long-term earnings profile of BAC)." Bank of America closed at $9.23 on Wednesday.