UPDATE: Stifel Nicolaus Downgrades Convergys to Hold

Stifel Nicolaus lowers its rating on Convergys CVG to Hold as it believes shares are already reflecting the catalyst from IM business sale. Stifel Nicolaus says, "Post CVG's announcement that it is selling the IM (billing) business, we are reducing our rating to Hold, or neutral, on the shares. While the IM business is being sold for more than what we had expected, peer contact center multiples have contracted by a full turn over the last month, implying a lower contact center valuation for CVG (see chart in body of note). While we believe the bias to the stock is upward from operational improvements, we don't see enough near-term upside potential to continue to recommend the shares. Also, we are unwilling to argue that the sector as a whole is undervalued." CVG closed at $14.02 a share on Thursday.