Wall Street bets on Lehman rebound
Lehman shares closed Tuesday near their lowest in five years. Since the year began, Lehman investors have lost more than $17.7 billion.
Lehman shares have dropped to just above $30, and Wall Street analysts have scaled back their expectations for the stock. Nevertheless, the average analysts’ target price assumes the stock will rebound as much as 85 percent, according to Reuters Estimates.
Wall Street remains decidedly bullish on Lehman shares, despite its drop to near a five-year low and reports it needs to raise capital.
Credit default swaps, which rise as investors lose confidence in companies’ financial condition, have climbed sharply of late, spurred in part by concern Lehman Brothers and other investment banks may need to raise additional capital, according to CDS dealers.