Analyst Downgrades: Michael Kors, Semtech, and Tilly's

Analysts are weighing in today on accessories designer Michael Kors Holdings Ltd (NYSE:KORS), semiconductor firm Semtech Corporation (NASDAQ:SMTC), and specialty retailer Tilly's Inc (NYSE:TLYS). Here's a quick roundup of today's bearish brokerage notes on KORS, SMTC, and TLYS.

• KORS is getting pounded by brokerage firms, as no fewer than 12 weighed in on the stock in the wake of yesterday's lackluster earnings. Among them is Goldman Sachs, which removed KORS from its "America's Buy" list, downgraded the equity to "neutral" from "buy," and slashed its price target to $50 from $93. Nevertheless, in early action, Michael Kors Holdings Ltd is up 0.3% at $46.09, after earlier touching a fresh two-year low of $45.61. Additional price-target cuts could be in the works, too, considering KORS' average 12-month price target of $75.58 stands at a 64% premium to current trading levels.


• SMTC is also feeling the weight of an earnings miss and a lackluster outlook, as well as a subsequent round of negative analyst attention. Specifically, Raymond James and B. Riley cut their price targets on the shares to $25 and $21, respectively, while the latter also lowered its opinion to "sell" from "neutral." At last check, Semtech Corporation was 11.3% lower at $21.85. In fact, the stock could notch a new annual low today, should it breach its July 2014 bottom at $21.69. Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) might not be so happy with these developments. During the past 50 days across those exchanges, speculators have bought to open 2.67 SMTC calls for every put -- a ratio that outstrips 74% of comparable readings from the past year.


• Last night, TLYS reported mixed first-quarter results and issued a disappointing current-quarter outlook. Both B. Riley and Roth responded by trimming their respective price targets to $15 from $17. On the charts, Tilly's Inc is getting wrecked, plunging 17.2% to trade at $10.77 -- a boon to recent short sellers. During the two most recent reporting periods, short interest on TLYS jumped 30.5%, and now makes up 6.4% of its total float -- which would take almost seven sessions to buy back, at typical daily trading levels.