Shares of Pepco slip to record lows

NEW YORK (AP) — Shares of electricity and natural gas provider Pepco Holdings Inc. on Wednesday hit a record low after analysts downgraded the company's stock, saying it is worth less than its current trading price.

Pepco shares hit $12.05 on Wednesday, its lowest price since 1984. The stock ended the regular session down 55 cents at $12.23.

Barclays Capital analyst Daniel Ford downgraded Pepco's stock to "Equal Weight" from "Overweight" after the company said it may divest its retail business and that 2009 earnings may be hurt by pensions. Ford also mentioned that the company's decision to defer about $400 million in utility capital spending in 2009 and 2010 will hurt growth.

Ford cut his 2009 profit estimate to $1.33 from $1.73 and lowered his 2010 earnings estimate to $1.57 from $1.99. Also, Ford lowered the company's price target to $15, compared with an earlier estimate of $19.