Ladenburg Thalman analyst Dick Bove slashed his estimates (FY08 from $3.87 to $2.36) and target (from $48 to $38) on Lehman (LEH), citing a slowdown in business in FQ2. Thalman is also concerned that the broker’s hedging positions have started to backfire:
“After a positive start in the month of March most of the businesses that Lehman serves fell back in April and May. The company’s hedges which worked so well to blunt the impact of markdowns in the first fiscal quarter (ended February 28) may not be working so well now. Plus, Lehman has begun the process of laying off personnel.”
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