UPDATE: Jefferies Downgrades U.S. Silica from Buy to Hold

In a report published Tuesday morning, Jefferies downgraded U.S. Silica Holdings, Inc. SLCA from Buy to Hold and lowered the price target from $41 to $31. Jefferies analyst Brad Handler cited several reasons for the downgrade:

1. Lack of progress in managing logistics costs;
2. Implied lower-than-expected volumes of higher-grade sand, and
3. Apparent lack of competitive advantage

Following the Jefferies downgrade, U.S. Silica shares are down nearly 4 percent to around $26.48 at last check.