(Recasts; adds details, share movement)
Aug 13 (Reuters) - Lehman Brothers' LEH.N price target and estimates were cut by Deutsche Bank analyst Mike Mayo, who forecast a third-quarter loss at the investment bank, citing additional mark-to-market losses and weaker than expected capital market revenue.
Mayo, who previously expected a profit for Lehman in the third quarter, cut the price target to $32 from $42.
Mark-to-market losses for the quarter are expected to be about $3 billion, the analyst said in a research note.
Lehman posted its first ever quarterly loss in June after writing off $3.7 billion of losses taken from bets on risky securities.
Global investment banking and core equity trading, and trading revenue should show sequential decline, while weaker global equity markets will hurt investment management revenue, Mayo said.
He expects a third-quarter loss of $2.68 a share, which is a sharp contrast from the previous profit outlook of 33 cents a share. Mayo also widened his loss estimate for 2008 to $6.55 a share from $3.40.
He cut his 2009 earnings estimates to $2.75 a share from $3.10 a share.
However, Mayo maintained a "buy" rating on the stock, saying the price target had attractive return potential.
Shares of Lehman were down 6.4 percent at $15.17 Wednesday midday on the New York Stock Exchange. (Reporting by Amiteshwar Singh in Bangalore; Editing by Bernard Orr)