UPDATE: Bank Of America Downgrades Coach

In a note released Wednesday morning, Bank of America analyst Lorraine Hutchinson downgraded shares of Coach COH from Undefined to Underperform and lowered the price target from $38 to $31.

"We are downgrading Coach to Underperform because we see downside risk to earnings as the company's turnaround strategies take time to gain traction," Hutchinson said.

Hutchinson feels that Coach's 30 percent operating margin target for fiscal 2019 is "unrealistic" and at $1.84 is 23 percent below the fiscal 2016 consensus EPS estimate of $2.39.

Hutchinson commented, "We question whether Coach will be able to perfectly execute a turnaround given that it is now a much bigger company... Coach needs to rely on increased fashion instead of pricing to turn the business, which is riskier, in our view."

Following the note Coach shares are up about 0.21 percent in the pre-market session.