Lehman Brothers recommends purchasing shares of Mirant Corp. (MIR)
Analyst D. Ford told his salesforce the change in investor sentiment towards wholesale market has resulted in a sell-off of energy merchant stocks. Ford thinks the sell-off is overdone. The analyst thinks the change in sentiment is a result of a sector shift into tech stocks. He also cites increased perceived political risks on both federal and state levels and concerns about the potential for contracting commodity prices and margins.
While Ford does not see catalysts that will stem the weakness in the near term, he thinks pre-announcement and upside earnings surprises are just around the corner.