UPDATE: Jefferies Downgrades OGE Energy On Low EBITDA 2014 Numbers

In a report published Wednesday, Jefferies analyst Paul Fremont downgraded OGE Energy Corp (NYSE: OGE) from a Buy rating to a Hold rating and lowered the price target from $44.50 to $37.50.

In the report, Jefferies says "We are downgrading OGE to Hold from Buy based on lower 2014 EBITDA provided by the company in its long awaited S-1 filing. Our original assumption was predicated on 2014 EBITDA of $1,100 million, which was $300 million higher than what is forecasted in the S-1 filing. The major drivers in the difference are an estimated $60 million of higher O&M expense, $35 million of reduced synergies and margin degradation related to declining basis differential."

OGE Energy closed on Tuesday at $35.32.