citi on bnb

1143 [Dow Jones] STOCK CALL: Citi cuts its EPS forecasts for Babcock & Brown (BNB.AU) again, down 5% this year, negative 49% in 2009 and down 26% in 2010. Babcock said yesterday its banks would suspend troublesome covenants on its debt, giving the struggling firm until early January to reach an agreement with its lenders about the future of its business. "We view this as a sign that the banks would rather BNB handle the complicated asset sale program for now," analyst Mike Younger said in his research. Citi rates the stock as Sell/Speculative and has a 32 Australian cent price target. Babcock shares last changing hands at 36.5 Australian cents, after coming off being halted at 25c Thursday morning. (CLK)