0720 GMT [Dow Jones] Morgan Stanley downgrades Halfords (HFD.LN) and Kingfisher (KGF.LN) to equalweight from overweight; it keeps its Halfords target at 540p but cuts Kingfisher to 225p from 240p. Even before the budget, there were signs UK consumer spending was under pressure, notes Morgan Stanley. It says the combination of tax rises and growing public sector unemployment looks set to make things worse. Morgan Stanley also downgrades WH Smith (SMWH.LN) to underweight from equalweight and cuts the target to 400p from 455p. And it downgrades Next (NXT.LN) to equalweight from overweight although it raises its target to 2250p from 2160p. The bank says overall consensus forecasts for FY'11/'12 are too high and it cuts its own forecasts by around 10%. The new target prices don't leave enough upside to remain overweight Kingfisher or Halfords, notes the bank. It trims DSG International (DSGI.LN) price target to 24p from 27p, Kesa Electricals (KESA.LN) to 100p from 105p Go-ahead target to 1250p from 1275p - all underweight. The bank cuts Home Retail Group (HOME.LN) to 230p from 275p and Marks & Spencer (MKS.LN) to 325p from 340p - both equalweight. Debenhams (DEB.LN) target goes to 72p from 85p - overweight. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 25, 2010 03:20 ET (07:20 GMT)