Shares in Pasadena-based financial services company IndyMac Bancorp. Inc. dropped nearly 9 percent Thursday and were down another 7.1 percent Friday after an analyst expressed concern for company’s financial stability.

Keefe, Bruyette & Woods Inc. analysts Frederick Cannon cut his price targets for the former lender to $2 from $6 saying that as defaults and foreclosures rise the lender’s lack of liquid capital make it more vulnerable.

Cannon said that after reviewing credit trends in IndyMac’s Alt-A mortgage securities portfolio, the quality of the lender’s holdings continued to deteriorate in March. He added that IndyMac could be facing a capital shortfall in the coming months.

“Given our forecast for continued losses in 2008, the need to raise capital is becoming more necessary for IndyMac,” Cannon wrote in a research report Thursday.

Cannon estimates IndyMac will lose $4 per share during 2008.

Shares in IndyMac closed down 8.7 percent Thursday and were down another 7.1 percent Friday to $5.10 in early trading on the New York Stock Exchange.