UPDATE: Stifel Nicolaus Downgrades Berry Petroleum to Hold Ahead of Q2 Report

Stifel Nicolaus reduced its rating on Berry Petroleum

from Buy to Hold and suspended its price target of $45. Stifel Nicolaus said, "We are downgrading BRY from a Buy to Hold. We believe that BRY is fairly valued assuming $85 oil. More importantly, although the company does not provide quarterly guidance, we believe that 2Q volumes could disappoint which would present downside risk to 2012 production guidance. 2Q volume disappointment could occur from potentially slower Diatomite ramp-up as many of the previously shut-in wells seem to have been damaged and from industry wide processing constraints occurring in the Permian given high activity levels." Berry Petroleum closed at $38.61 on Monday.