UPDATE 1-Citi sees $9 bln writedowns at U.S. investment banks

lunes 10 de marzo de 2008 15:11 CET

 (Recasts throughout, adds details)
 March 10 (Reuters) - Citigroup forecast $9 billion of
writedowns at U.S. investment banks in the first quarter of
2008, primarily driven by additional leveraged loan and
mortgage-related losses.
 The brokerage also cut its price target on several asset
managers including Calamos Asset Management Inc (CLMS.O: Cotización) and T.
Rowe Price Group (TROW.O: Cotización).
 Calamos Asset's performance had deteriorated in early 2008
and Citigroup said it does not not see a rapid turnaround in
outflows during the year.
 The brokerage said though T. Rowe was one of the
best-positioned asset managers to drive meaningful earnings
growth, the stock had priced in the prospects and investors
should wait for a better entry point to become more aggressive
on the shares.
 Lehman Brothers Holdings Inc LEH.N was most exposed to
residential mortgage deterioration during the last week of the
quarter, analyst Prashant Bhatia wrote in a note to clients on
Friday. He forecast writedowns of $1.6 billion at Lehman.
 Bhatia also forecast writedowns of $3.2 billion at Goldman
Sachs Group Inc (GS.N: Cotización), $2.9 billion at Merrill Lynch & Co Inc
MER.N and $1.2 billion at Morgan Stanley (MS.N: Cotización).
 Following are the price target changes made by Citigroup:
 Stock                       Price Target            Rating
                             New       Old
 T. Rowe Price               $54       $60            Hold
 Calamos                     $20       $24            Hold
 Lazard (LAZ.N: Cotización)              $40       $50            Hold
 Och-Ziff Capital (OZM.N: Cotización)    $25       $29            Hold
 Franklin Resources (BEN.N: Cotización)  $102      $112           Hold
 Fortress Investment (FIG.N: Cotización) $14       $19            Hold
 Legg Mason (LM.N: Cotización)           $85       $95             Buy
 Blackstone Group (BX.N: Cotización)     $30       $33             Buy
 (Reporting by Amulya Nagaraj and Aditi Samajpati in Bangalore;
Editing by Amitha Rajan, Bernard Orr)