November 29, 2007 / 8:04 AM / 11 years ago

UPDATE 1-RESEARCH ALERT-CIBC cuts Lehman price target

(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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below