Mirant shares fall as analyst downgrades utility

Mirant shares tumble pct as analyst downgrades the utility on high stock price, plant closure

• On 3:44 pm EDT, Wednesday September 16, 2009

NEW YORK (AP) -- Shares of electric utility Mirant Corp. tumbled on Wednesday as an analyst downgraded the company, citing its high stock price and recent plant closure in California.

Mirant shares dropped 88 cents, or 4.9 percent, to $17.11 in afternoon trading. From Sept. 3 through Tuesday's close, shares of the company had jumped 12.7 percent.

Last month the company agreed to permanently close its Potrero power plant in San Francisco by the end of 2010 and pay the city at least $1 million to address pediatric asthma in nearby communities.

Citi Investment Research analyst Brian Chin cut his 2011 earnings estimates to reflect the retirement of Potrero. He also said the current stock price is too expensive and downgraded the stock to "Sell" from "Hold." Chin cut his price target for the company to $13 from $15.