UPDATE: Stifel Nicolaus Initiates Hold on Renewable Energy Group

Stifel Nicolaus initiates its coverage on Renewable Energy Group

with a Hold rating as near term industry dynamics are challenging. Stifel Nicolaus says, "We see some near-term challenges in the biodiesel industry that keep us from recommending REGI shares. Namely, the current excess capacity and substantial production toward 2012 RVOs in 2011 are leading to limited industry profitability, and the spreads on production cost versus selling prices of biodiesel appear set to remain thin over the next few quarters. In addition, the 2013 biodiesel blending requirements are yet to be finalized." REGI closed at $9.77 a share on Monday.