UPDATE 3-RESEARCH ALERT-Bear, FBR see '08 loss at National City

(Adds Punk Ziegel comments, share movement)

April 22 (Reuters) - At least two brokerages on Tuesday forecast an operating loss for National City Corp (NCC.N: Quote, Profile, Research) for 2008, a day after the large U.S. Midwest bank said it was raising $7 billion through recapitalization, announced a big dividend cut and posted disappointing quarterly results.

However, two other brokerages took a bullish view on the stock, given its falling valuation.

"The company is not dead and the stock's valuation is compelling," Punk Ziegel analyst Richard Bove said, while giving his top rating to the stock.

Sanford C. Bernstein also raised its rating on the stock to "outperform" from "market perform," saying the negative factors have already been priced in.

Bear Stearns, however, was bearish on the stock as it felt in the near term, developments in National City's liquidating portfolios, and the general market view of home prices and related real estate loan losses will influence the shares.

Bear downgraded the stock to "underperform" from "outperform" and forecast a loss of $1.25 a share for the company in 2008. It had previously estimated a profit of $1.35.

Friedman also forecast a loss of 74 cents a share for National City, compared with its previous profit estimate of 80 cents a share. Both, Bear Stearns and Friedman, however, expect the company to break even in 2009.

Punk Ziegel's Bove said the decline in the dollar is likely to shift the trade balance in favor of the United States to a greater degree than it has been for some time. "This means more manufacturing in this country, a stronger Midwest, and more business for National City," he added.