UPDATE 1-Analysts see tough 2008 for Lehman, widen loss view
(Recasts, adds details, share movement)
Sept 11 (Reuters) - Wall Street analysts cut their ratings and widened their 2008 loss estimates for Lehman Brothers Holdings Inc LEH.N, indicating that the troubled investment bank's efforts to shed risky assets may not be enough to curb rising losses.
Lehman shares, which have plunged over 40 percent in the last two days, were down 23 percent at $5.56 before the bell.
Goldman Sachs downgraded Lehman to "neutral" from "buy" and removed it from Americas buy list on Thursday, a day after Lehman posted a third-quarter loss of $4 billion.
"Management did not successfully put to rest the issues that had been pressuring the stock," William Tanona of Goldman Sachs wrote.
On Wednesday, Lehman posted a larger-than-expected quarterly loss of $5.92 a share, slashed its annual dividend by more than 90 percent and announced plans to sell a stake in its fund business and reduce its exposure to risky assets.
Despite seeing Lehman's initiatives as a "step in the right direction," Oppenheimer's Meredith Whitney continues to expect a tough 2008 for the investment bank.
Lehman faces challenges to earnings given difficult capital markets for the next several quarters and potential writedowns to its remaining risk exposures, Whitney wrote in her note dated Sept. 10.
She expects Lehman to breakeven for the fourth quarter, down from her prior view of a profit of 36 cents a share. For 2008, she widened her loss view to $10.24 a share from $6.67. Continuación...