Wachovia may not raise capital in near-term: Deutsche

(Reuters) - Wachovia Corp WB.N is unlikely to raise more capital in the near-term, according to an analyst at Deutsche Bank, who said the fourth-largest U.S. bank is a "uniquely attractive" merger partner.

The company's stock price is over 50 percent lower than its estimated franchise value, analyst Mike Mayo said.

Wachovia earlier this month ousted Chief Executive Ken Thompson, a move that raised speculation that the bank could become a takeover target.

"A new CEO could be a positive catalyst," Mayo said.

"Given the lack of permanent leadership, continued deterioration in mortgage markets, the significant decline in the stock, and the unusual uncertainty that surrounds the company, we feel that Wachovia could feel a need to move the CEO search process along more quickly," the analyst said.

Mayo cut his 2008 and 2009 profit estimates on Wachovia to reflect expectations of higher losses on mortgage loans.

He lowered his earnings outlook for 2008 to $1.15 a share from his prior forecast of $2.00 per share. He cut his 2009 earnings estimate to $2.75 per share from $3.00 a share.

Mayo reduced his price target on the stock to $30 from $35, but continues to rate the stock "buy."

Shares of Charlotte, North Carolina-based Wachovia were little changed at $16.88 in morning trade Thursday on the New York Stock Exchange.

(Reporting by Tenzin Pema in Bangalore; Editing by Pratish Narayanan)