uly 11 (Reuters) - Fox-Pitt Kelton cut Wachovia Corp’s (WB.N: Quote, Profile, Research, Stock Buzz) rating and price target on its expectation that the bank would announce a big capital raise and a further dividend cut when it announces second-quarter results on July 22.

The brokerage cut the bank to “in-line” from “outperform,” and slashed its price target on the stock to $14 from $22.

Wachovia shares were down about 8 percent at $12.11 before the bell. They closed down 8 percent at $13.13 on the New York Stock Exchange on Thursday, a day after announcing that it expects a second-quarter loss of $2.6 billion to $2.8 billion.

The stock has tumbled about 75 percent from its 52-week high of $53.10 last September.

“We acknowledge the stock has declined materially in the past few months, but believe there is further potential downside and little catalyst to move the stock higher in the interim given likely capital actions, further credit charges and reserve build, and likely impaired earnings power,” Fox-Pitt analyst Andrew Marquardt said.

Fox-Pitt expects the bank to raise $5 billion to $7 billion in capital, and now expects a loss of 51 cents a share for 2008, compared with its earlier projection of a profit of 57 cents. (Reporting by Varsha Tickoo in Bangalore; Editing by Bernard Orr)