June 11 (Bloomberg) -- Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, dropped for the fourth consecutive day as a Merrill Lynch & Co. analyst cut his rating to ``neutral'' from ``buy.''
The ``scale of the second-quarter loss and capital-raise indicate lower return on equity potential and lower confidence, especially given Lehman's remaining exposure,'' Merrill analyst Guy Moszkowski wrote in a note today. He reduced his price target to $28 a share from $36.
Last week his opinion was different. Merrill Lynch analyst Guz Mozkowski said last week "Lehman shares have meaningfully undershot fair value in the last few days on speculation and concerns that are not justified...''
Now that the stock has dropped 25%, apparently the concerns are now justified.