(Adds details, analyst's comments, background)
Nov 29 (Reuters) - CIBC World Markets analyst Meredith Whitney lowered her price target on Lehman Brothers Holdings Inc LEH.N to $79 from $95 as she cut her fourth-quarter and 2008 earnings estimate on the bank due to the recent credit market disruption.
She reduced her fourth-quarter earnings-per-share estimate on the No. 4 U.S. investment bank to $1.52 from $1.73 a share, basically flat with the third quarter.
Whitney, who has a "sector outperformer" rating on the stock, also cut her 2008 estimate on Lehman to $7.95 a share from $8.50 as she anticipated a more "protracted environment of credit turmoil".
Earlier in the month, Lehman had relieved investors by suggesting that it does not expect substantial write-downs of its most illiquid assets, boosting the bank's shares.
Lehman's shares have sunk more than 20 percent year-to-date compared with an about 12 percent decline for the sector as measured by the Amex Securities Broker-Dealer Index .XBD, hurt by the credit market turmoil. Shares of Lehman closed up more than 8 percent at $64.85 Wednesday on the New York Stock Exchange. (Reporting by Nivedita Gupta in Bangalore; Editing by Jarshad Kakkrakandy)