UPDATE: Stifel Downgrades Spark Energy Inc. to Hold, Removes PT on Significant Attrition in Southern California

In a report published Monday, Stifel analyst Selman Akyol downgraded the rating on Spark Energy Inc. SPKE from Buy to Hold, and removed the $18.00 price target. In the report, Stifel noted, "Spark Energy Inc. markets electric and natural gas to retail and commercial customers across the United States. SPKE reported results for 4Q14, which was its first full quarter as a public company. For the quarter the company reported Adjusted EBITDA of $5.0 million against our estimate of $8.7 million and a Gross Operating Margin of $16.5 million below our estimate of $26.1 million. Results on the quarter were driven by bad debt expense and attrition in the company's Southern California customer base. Given the company's challenges in the Southern California market we are downgrading our rating to Hold from Buy as we wait for Spark to develop a more stable customer base." Spark Energy Inc. closed on Friday at $15.40.