UPDATE: JP Morgan Downgrades U.S. Silica Holdings to Hold on Valuation

JP Morgan downgraded U.S. Silica Holdings

from Buy to Hold and maintained a $19.00 price target. JP Morgan noted, "We downgrade SLCA on valuation (shares +40% since 9/30/12). We remain supportive of business fundamentals, including near and medium term growth prospects. However, to maintain our Buy rating at these levels we would have to get more aggressive with assumptions for capacity growth and SLCA's ability to retain 50%+ gross segment margins over the long term, which we are unwilling to do at this stage." U.S. Silica Holdings closed at $19.21 on Wednesday.