NEW YORK (TheStreet) -- Shares of OGE Energy Corp. (OGE) are down 0.44% to $34.17 after Jefferies downgraded the Oklahoma-based company to "hold" from "buy" and lowered its price target to $35.50 from $42.
"We are downgrading OGE to 'hold' from 'buy' based on lower expected liquids pricing and the corresponding reduction in ENBL's DCF," analysts said.
"Due to the contraction of MLP DCF multiples, 2017 GP multiples have gone from 22x to 13x and LP multiples have declined to 11.2x from 17x, we believe OGE is fair value at current levels," analysts noted.
"We now believe OGE's share of Enable Midstream Partners (ENBL) is worth $8.50 (50 cents for GP and $8 for LP) and its regulated utility worth $25.25 plus $1.75 worth of cash," analysts added.
Separately, TheStreet Ratings team rates OGE ENERGY CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate OGE ENERGY CORP (OGE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."