UPDATE: Bank Of America Reiterates On Coach On Ambitious Turnaround Strategy

In a report published Friday, Bank of America analyst Lorraine Hutchinson reiterated a Neutral rating on

, but lowered the price target from $47.00 to $38.00. In the report, Bank of America noted, “Coach's plan assumes an extremely weak F2015, with stabilization in F2016 and a dramatic turnaround over five years. "We think Coach's turnaround metrics, particularly returning to 30% operating margin, look optimistic. We are cutting our Street-low F2015 EPS estimate by $0.49 to $1.80 on a reduced NA sales outlook and lowering our PO to $38 given our reduced estimates. Our Neutral rating balances the potential for an eventual turnaround with the near-term operating underperformance and long duration that often accompanies such turns.” Coach closed on Thursday at $35.69.