Analyst puzzles investors with Lehman “Buy” rating

This morning I read a few quotes from a popular analyst, Richard Bove, outlining his reasons for keeping a “buy” rating on Lehman Brothers.

Last Thursday, Bove asserted that conditions are ripe for a hostile takeover bid and shares of Lehman have risen over 15 percent since then.

The stock has been hammered this year, losing over 75 percent of its value.  The company remains in the news regularly and not for positive reasons. This week it was news of a 6 percent workforce reduction, prior to that it was a $2.8 billion loss in the second quarter, calls for the resignation of the CEO, the removal of the CFO…the list goes on.

Lehman’s shrinking stock price may make it a takeover target but, at this point how would anyone know what their equity is truly worth or what’s hiding on (or off of) their balance sheet?  Sure, $15.85 per share looks cheap when compared to the stock’s 52-week high of $67.73, but what if it’s really worth $5 or below?  I have no stake in Lehman’s future so don’t take this as a yea or nay on the stock, just my thoughts.

Does this sound like a stock you would want to buy?