(Recasts; adds details, share movement)
Sept 15 (Reuters) - UBS narrowed its 2008 and 2009 loss estimates on MBIA Inc (MBI.N) 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)