(Recasts; adds details, share movement)

July 1 (Reuters) - JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) may take $16 billion of provisions for credit losses in 2008, said Fox-Pitt Kelton analyst David Trone, who also believes that any additional acquisitions by the bank would be too risky.

"We see the ABS-CDO/subprime debacle yielding to a more general weak credit cycle, and impending problems in consumer and corporate are likely to hurt JP Morgan as much, if not more, than peers," said Trone

He downgraded the stock of the third-largest U.S. bank to "in line" from "outperform" and cut the earnings estimates by 65 cents to $2.25 a share for 2008 and by another 71 cents to $3.29 a share for 2009.

Trone, who took over coverage of the bank from analyst Andrew Marquardt, said he expects the bank's Tier 1 ratio -- a measure of financial strength based on capital available against perceived risk -- to fall to 7.2 percent by the fourth-quarter of 2009.

In March, the U.S. Federal Reserve urged a well-capitalized JPMorgan to acquire Bear Stearns Cos, at a fire sale price, to keep the fifth-largest investment bank from going bankrupt.

However, analyst Trone believes that it was unlikely that JP Morgan would get help from the government for further acquisitions similar to its deal for Bear Stearns.

"We believe JP Morgan should hunker down and reserve its relatively strong balance sheet to weather its own forthcoming increase in credit costs," the analyst said.

He said the bank represented an attractive collection of strong franchises for the longer-term, provided it can escape the pending credit downturn without too much damage.

Trone cut the price target by $5 to $45 on the bank's stock, which was trading down more than 3 percent at $32.74 in afternoon trade on the New York Stock Exchange. (Reporting by Ramya Dilip in Bangalore; Editing by Jarshad Kakkrakandy, Anil D'Silva)