Countrywide saw its share price drop over six percent in early morning trading as Lehman Brothers cut its price target to $28, down from $30.
Lehman Brothers currently has an “equal weight” rating on the beleaguered mortgage lender, though that could change at any given moment based on the volatility of this market.
The fact that the cut to $28 a share is still much higher than the current share price of roughly $20 says the company still has reasonable confidence in Countrywide to turn things around.
The news comes after a Merrill Lynch analyst downgraded the stock to a “sell” rating and stirred up Countrywide bankruptcy fears.
Just two weeks ago Friedman, Billings Ramsey analyst Paul Miller said that he was sticking with an underperform rating and a 12-month price target of $25.
According to Zacks Investment Research, Countrywide has two strong buy ratings, two buy ratings, eight hold ratings, no sell ratings, and one strong sell rating.
Zacks research reported that analyst sentiment had actually improved over the last month, with three strong sells reported one month ago.
In related news, analyst Steven C. DeLaney of JMP Securities upgraded Luminent Mortgage Capital Inc from “sell” to “market underperform” with a price target of $1, up from a previous $0.