UPDATE: KeyBanc Capital Markets Downgrades OM Group to Hold

KeyBanc Capital Markets lowers its rating on OM Group

to Hold from Buy on disappointing Q4 and outlook. KeyBanc Capital Markets says, "Our previous BUY rating was based on the thesis that valuation, better communication about the current strategy with investors, battery demand and cash flow would support shares and help build a positive long-term story. However, the disappointing 4Q11 results and outlook along with falling cobalt prices should limit much of the upside in OMG shares in the coming months. The near-term issues make it difficult to recommend building a position in OM Group, Inc. (OMG-NYSE) now, even with a longer-term view." OMG closed at $26.88 a share on Thursday.