UPDATE: Stifel Nicolaus Downgrades QR Energy to Hold

Stifel Nicolaus lowers its rating on QR Energy QRE to Hold on valuation. Stifel Nicolaus says, "Since its December 2010 IPO the partnership has substantially grown production and distributions via acquisition. We continue to believe distribution growth is in the cards at QRE given its level of cash flow but believe the incentives for substantial near term growth is mitigated by the incentive fee structure. The units have reached our previous target price and appear to be fairly valued, in our opinion." QRE closed at $23.52 a share on Thursday.