UPDATE: JP Morgan Downgrades Accuray to Underweight on Negative Pre-Announcement

JP Morgan reduced its rating on Accuray (NASDAQ:

) from Neutral to Underperform and removed its previous $8 price target. JP Morgan noted, "Accuray (ARAY) pre-announced F2Q13 results that fell dramatically short of J.P. Morgan and Street expectations, while the company significantly cut fiscal 2013 guidance and announced a restructuring plan. … in light of competitive pressures, multiple company-specific execution issues (manufacturing challenges with new products, disruption from sales force restructuring), and the prospect of share losses and cash burn for the foreseeable future, we are downgrading our rating to Underweight and withdrawing our price target." Accuray closed at $6.78 on Thursday.