Analyst downgrades 6-06-07: BGP, CACH and GILD

MOST NOTEWORTHY: Borders Group Inc (NYSE: BGP), Cache Inc (NASDAQ: CACH) and Gilead Sciences Inc (NASDAQ: GILD) were today's noteworthy downgrades:

Borders Group was downgraded to Sell from Neutral at Goldman Sachs, as the firm believes a merger with Barnes & Noble Inc (NYSE: BKS) is less likely following the FTC's decision to oppose the Whole Foods Market Inc (NASDAQ: WFMI) and Wild Oats Markets Inc (NASDAQ: OATS) deal.
Cache was downgraded to Hold from Buy at Soleil, as the firm recommends staying on the sidelines until execution improves. Merriman also downgraded shares, to Neutral from Buy, to reflect the company's outlook for the remainder of FY07. Merriman believes upside may be limited until Cache can show consistently improved sales and earnings results.
Gilead Sciences was downgraded to Hold from Buy at Deutsche Bank and to Neutral from Outperform at Credit Suisse citing high expectations for the company and little room to beat Street estimates.

OTHER DOWNGRADES:

Merrill Lynch downgraded shares of Adams Respiratory Therapeutics Inc (NASDAQ: ARXT), Par Pharmaceutical Companies Inc (NYSE: PRX) and Sepracor Inc (NASDAQ: SEPR) to Neutral from Buy.
First Albany downgraded shares of Volterra Semiconductor Corporation (NASDAQ: VLTR) to Buy from Strong Buy.
ThinkEquity downgraded shares of Cree Inc (NASDAQ: CREE) to Sell from Accumulate.
Morgan Keegan downgraded shares of Panera Bread Company (NASDAQ: PNRA) to Market Perform and Outperform following weak same-store-sales and guidance.