UPDATE: Stifel Nicolaus Downgrades Active Power to Hold

Stifel Nicolaus lowers its rating on Active Power

on significant challenges to the company's core business. Stifel Nicolaus says, "The company made significant progress growing revenues and expanding gross/operating margins from 2004-2010; however, it appears its core UPS business has recently experienced significant difficulties that are uncorrelated to the overall trends we have seen in its target end markets. In October 2011, the board of directors parted ways with the former CEO, evidence that all was not right with the internal strategy, and while an executive search is underway, we believe that clarity around a new permanent leader with a coherent strategy is required before we can continue to recommend the shares." ACPW closed at $0.94 a share yesterday.