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Analysts are downwardly revising their ratings today on cereal bigwig Kellogg Company (NYSE:K), apparel company Michael Kors Holdings Ltd (NYSE:KORS), and biopharmaceutical firm Targacept, Inc. (NASDAQ:TRGT). Here's a quick look at today's bearish brokerage notes on K, KORS, and TRGT.
- Goldman Sachs downgraded K to "sell," and slashed its price target to $59 from $64. Based on Kellogg Company's Monday closing price of $66.20, the brokerage firm is forecasting a 10.9% decline in the shares. K -- which has gained 8.4% year-to-date, but is trading slightly lower on a year-over-year basis -- is no stranger to skeptical attention from analysts. Currently, the cereal-aisle standby sports only 17% "buy" ratings.
- KORS fell 3.5% Monday to close at $85.67 in the wake of some bearish media coverage. The stock is still attracting negative attention today, with price-target cuts rolling in from analysts at Barclays, Citigroup, and Sterne Agee. The gloomiest forecast of the group comes courtesy of Barclays, with a downwardly revised target of $82 and an "underweight" rating on KORS. Michael Kors Holdings Ltd is poised to open more than 3% lower, which means the stock may suffer a second consecutive daily close beneath its 200-day moving average for the first time ever.
- MKM Partners lowered its price target on TRGT to $3.50 from $4.50, which means the firm is banking on downside of nearly 21% from the equity's current perch. After a mid-stage failure forced Targacept, Inc. to halt a drug trial yesterday, the stock was down as much as much as 19.8% in intraday trading -- but TRGT pared its losses considerably to close at $4.41, off just 0.7% for the session. Monday's steep sell-off triggered a short-selling restriction, but -- with 13.1% of the stock's float sold short -- the bears could be looking to regain control today. Ahead of the open, TRGT is down nearly 5%.