UPDATE: Jefferies Downgrades Magnum Hunter to Hold Following Muted Reserve Report

Jefferies downgraded Magnum Hunter Resources MHR from Buy to Hold and lowered the price target from $6.50 to $4.50. Jefferies noted, "Reserve report showed that resources acquired and discovered by company are less prolific and more expensive than we previously expected. 2013 could be a turning point if the company succeeds at selling high-cost properties, replacing them with low-cost ones, and managing its outspend. … $4.50 of probable credit reflects unbooked Eagle Ford, Bakken, and Marcellus reserves as well as value to Utica acreage. Risks include commodity price volatility, geologic irregularities, and increased regulation." Magnum Hunter closed at $4.48 on Wednesday.