UPDATE: Stifel Downgrades Magnum Hunter Resources On Lack Of Positive Near-Term Catalysts

In a report published Thursday, Stifel analyst Daniel Guffey downgraded the rating on

from Buy to Hold, and removed the $4.00 price target. In the report, Stifel noted, “Headwinds including declining natural gas prices, operational hiccups and delays, and the downgrade of the company's debt have all placed significant pressure on the shares. While we still see going concern value, we also see few likely positive catalysts in 1Q15 and believe natural gas price risk (only 30% hedged in 2015 at $4.09/MMBtu and 0% in 2016) could outweigh any potentially positive operational or divestiture news. Additionally, we believe management must complete divestitures (Kentucky and/or Bakken assets, Eureka Hunter) in 2015 to fund its late 2015 and 2016 Appalachian drilling program.” Magnum Hunter Resources closed on Wednesday at $1.85.