Morgan Stanley forecasts $3.5B Lehman write-down

NEW YORK (MarketWatch) - A research note by Morgan Stanley released Wednesday
predicts a third quarter loss for Lehman Bros. of $2.80 a share, on the back of a
$3.5 billion write-down. “For the franchise to turn the corner, we think
management needs to announce a significant bulk asset sale or framework for
investors to evaluate the structure/pricing of likely asset disposals (and
incremental capital, should it be needed),” wrote analyst Patrick Pinschmidt. He
also revised his estimates for the fourth quarter, down to a loss of 41 cents a
share from a profit of 30 cents a share. Pinschmidt cut 2009 earnings estimates
to $3.25 a share, from $3.43, and 2010 estimates to $3.85 a share from $4.15. He
said, however, that Morgan Stanley remains overweight on Lehman.

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Technorati Tags: 5b, Asset Disposals, Earnings Estimates, Fourth Quarter, Franchise, Investors, Lehman Bros, Morgan Stanley, Overweight, Quarter Loss