BUZZ-Rolls Royce: enters second day of selling after broker downgrades

** Rolls Royce (LSE: RR.L - news) falls 3.5 pct as multiple brokers downgrade and cut target prices on the stock

** Stock ended down 6.3 pct on Monday after profit warning

** Two day fall worst since October 2014

** Investec (LSE: INVP.L - news) cuts to "sell" from "hold", says downside risk still not represented in share price, medium-term risks around launch of new Airbus A380

** BESI cuts to "neutral" from "buy", also flags headwind from new engines in A330 planes

** Price targets cut at Bernstein, RBC (Other OTC: RBCI - news) , Natixis (Paris: FR0000120685 - news)

** RBC says hopes of RR being acquired by United Technologies are "baseless"

** Among top fallers on Stoxx 600 for second day

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)