Ladenburg did nothing to spare the feelings of management and employees at Lehman (LEH). It cut its price target on the brokerages stock to $38 from $48.
According to Reuters, the research firm said "the company’s hedges which worked so well to blunt the impact of markdowns in the first quarter may not be working so well now."
The news adds to a number of recent downgrades and lowered price targets for US money center banks and investment houses. It is beginning to dawn on Wall St. that the troubles from the credit crisis could easily extend into the later quarters of this year, and perhaps to the early part of 2009.
The arctic night just got longer.
Douglas A. McIntyre