UPDATE: Stifel Nicolaus Downgrades RealD to Hold on Declining Conversion Rates

Stifel Nicolaus reduced its rating on RealD

from Buy to Hold and removed its price target of $16. Stifel Nicolaus commented, "We are downgrading our rating on RealD from Buy to Hold and establishing a current fair value of $10.00. The premises for the downgrade is not so much weaker than expected 1Q13 earnings but rather structural issues which we believe will reduce the royalty/box office conversion rates in the domestic market, an issue which we do not see abating. With no meaningful 3D movies until December, we see limited near-term catalysts even with the company now embarking on a stock buy back." RealD closed at $12.60 on Monday.