Oct 27 (Reuters) - At least three brokerages cut their price target on shares of PrivateBancorp Inc (PVTB.O: Quote, Profile, Research), citing the lender's disappointing quarterly results and higher credit losses.

Shares of the company, which plunged nearly 34 percent on Monday, continued their downward trend on Tuesday, dropping as much as much as 18 percent to $9 in the early session.

On Monday, PrivateBancorp posted a surprise third-quarter loss, as weakness in commercial real estate forced the Chicago lender to almost triple its provision for bad loans, and announced a $175 million stock offering. [ID:nBNG81126]

The capital raise should help to absorb losses and fund growth, analyst Adam Klauber of Fox-Pitt Kelton said, cutting his price target on the company's stock to $15 from $27.

Analyst Jon Arfstrom of RBC Capital Markets also cut his price target on PrivateBancorp shares to $15, from his prior view of $23, based on the company's "challenging quarter and outlook."

We expect a continuation of recent trends with rather stable net charge-offs, continued deterioration in non-performing asset levels and a continued reserve build, RBC's Arfstrom said.

However, Daniel Arnold of Sandler O'Neill, while lowering his price target on the lender's stock to $13, raised his rating to "hold" from "sell," based on the stock's current valuation.

"While we believe that the next few quarters will be difficult for PrivateBancorp, and result in earnings losses, we believe that the current valuation adequately reflects this dynamic," Arnold said.

(Reporting by Brenton Cordeiro in Bangalore; Editing by Anil D'Silva)