As previously reported, Roth Capital analyst Dave King downgraded Cherokee to Neutral from Buy after Cerberus issued a notice of default, subjecting the company to higher borrowing rates. The shares continue to look undervalued based on guaranteed minimum royalties that exceed current enterprise value, but Cherokee noted significant liquidity challenges due to recurring operating losses and negative cash flow as well as material uncertainties regarding its ability to meet debt commitments, said King. He lowered his price target for Cherokee shares to 85c from $1.85.