UPDATE 1-RESEARCH ALERT-UBS narrows '08, '09 loss view on MBIA

lunes 15 de septiembre de 2008 18:41 CEST

(Recasts; adds details, share movement)

Sept 15 (Reuters) - UBS narrowed its 2008 and 2009 loss estimates on MBIA Inc (MBI.N: Cotización) as it sees smaller looses at the company's segments, but said business prospects for the largest U.S. bond insurer were minimal.

The brokerage expects MBIA to report a 2008 loss of $4.65 a share, compared with an earlier estimate for a loss of $11.45 a share. The 2009 loss is expected to be $2.65 a share, narrower than a loss of $6.65 a share forecast earlier.

UBS expects the home equity line and closed end second sectors of the company to record a cumulative loss of $3.0 billion to $3.4 billion, about half of previous estimates for a loss of $6.0 billion to $6.6 billion.

"At the end of the day that is the loss they are going to have," analyst Brian Meredith said by phone.

The analyst kept his estimate for a loss of $2.8 billion to $3.0 billion related to the company's collateralized debt obligation unchanged.

Meredith, who rates MBIA's stock "neutral," raised his price target on the stock by 150 percent to $15.

Shares of the Armonk, New York-based company were trading down 95 cents at $12.04 Monday afternoon on the New York Stock Exchange. They had fallen 13 percent to a low of $11.32 earlier. (Reporting by Anurag Kotoky in Bangalore; Editing by Pratish Narayanan)