Jefferies Downgrades OGE Energy (OGE) to Hold

Jefferies downgraded OGE Energy (NYSE: OGE) from Buy to Hold and cuts its price target from $57 to $55.

The firm states, "We are downgrading OGE Energy shares to Hold from Buy based on lower earnings expectations in their Enogex business. On the earnings, call management stated that they expect the mix of low margin fixed-fee contracts to increase while high margin keep-whole contracts decrease. In 2011, 31% of all processing contracts were high-margin keep-whole, and we expect that to decline to approximately 15% by 2013."

For more ratings news on OGE Energy click here and for the rating history of OGE Energy click here.

Shares of OGE Energy closed at $51.31 yesterday.

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