UPDATE: KeyBanc Capital Downgrades Warren Resources to Underweight (WRES)

KeyBanc Capital is out with its report today on Warren Resources WRES, downgrading WRES from Hold to Underweight. In a note to clients, KeyBanc Capital writes, "Given the flat production profile, the increased spending level, the speculative nature of the Niobrara on WRES's acreage, and the stock price performance over the last 12 months, we think the shares could come under pressure near term. Thus, we are downgrading our rating on WRES shares from HOLD to UNDERWEIGHT and establishing a downside price target of $3.00 per share." At the time of posting, shares of WRES were trading at $4.57, down 12.97% from Tuesday's close.