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Retail Upgrades/Downgrades: Staples, Costco

Retailers are seeing some ratings revisions from analysts.

NEW YORK (

TheStreet

) -- Retail analysts are taking some action as fall kicks in, with several companies received ratings revisions.

Staples

(SPLS)

was added to Goldman Sachs' conviction buy list as the office supply retailer gains market share, analyst Matthew Fassler wrote. The company is managing its promotions for back-to-school and is being more disciplined in its capital allocation.

Shares of Staples are gaining 3% to $19.23 in morning trading.

Goldman also gave a nod to

Costco Wholesale

(COST) - Get Costco Wholesale Corporation Report

, upping the discount retailer to buy from neutral. Analyst Adrianne Shapira also raised her profit outlook for this year and 2011.

Costco is seeing its profit improve through sales gains, accelerated unit growth and expense control, Shapira wrote in a note. It also possesses the ability to raise membership fees, which could add an incremental 5% per share profit upside to Shapira's revised forecast.

Shares of Costco are rising 1.1% to $59.26 in early trading.

But

Dick's Sporting Goods

(DKS) - Get Dick's Sporting Goods, Inc. Report

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got the shaft from the brokerage firm, downgraded to neutral from buy. As a result, shares are off 1.2% to $25.61 in morning trading.

J.P. Morgan cut its estimates on

Best Buy

(BBY) - Get Best Buy Co., Inc. Report

heading into its second-quarter earnings result next week.

Analyst Christopher Horvers now expects the electronics retailer to earn 35 cents a share from prior outlook of 45 cents.

"We believe Best Buy's sales deteriorated slightly throughout the quarter with some modest relief in the back half of August as the consumer continues to shop close to need," Horvers wrote in a note. "While wireless and appliances were strong, these categories were simply too small to offset the sequential weakness in TVs and PCs, categories that represent 40% to 45% of sales. In addition to a lackluster consumer environment, structural product cycle issues continue to dominate."

--Written by Jeanine Poggi in New York.

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