November 7, 2008 / 1:14 PM / 10 years ago

UPDATE 1-Fox-Pitt sees Q4 loss at Citi, cuts JP Morgan shr view

(Recasts; adds details)

Nov 7 (Reuters) - Fox-Pitt Kelton forecast a fourth-quarter loss for Citigroup (C.N), while cutting its earnings estimates for JP Morgan Chase & Co (JPM.N), citing dilution related to the U.S. Treasury’s capital purchase program, a volatile equity market and credit concerns.

The brokerage now expects Citigroup to post a loss of 8 cents a share in the fourth quarter, from its prior estimate of break-even for the company.

JP Morgan’s fourth-quarter profit estimate was cut to 65 cents a share from 90 cents a share.

The weakness in the equity markets is likely to impact the asset levels in both the companies’ wealth management portfolios, Trone said in a note to clients.

Trone kept his “in line” rating on Citigroup, but cut his price target on the stock to By $5 to $20.

“We continue to believe that JPM will be a major market share beneficiary although weak equity markets and a tougher consumer credit environment will weigh on near-term results,” said the analyst who kept his “outperform” rating on JPMorgan.

Shares of Citigroup closed at $11.52 Thursday on the New York Stock Exchange, while those of JPMorgan closed at $38.26. (Reporting by Arup Roychoudhury in Bangalore; Editing by Anil D’Silva); within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:

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