The analysts, led by Matthew Boss, slashed their recommendation on the retailer to 'underweight' from 'neutral'.
They also cut its price target to US$10 from US$12.
Boss cited operating profit pressures as the company continued its efforts to rebrand away from its sexy reputation.
Analysts say there are "no silver bullets to sustainable operating profit expansion" with revenue growth as the primary factor going forward.
They believe the stabilsation across the retail industry is a prerequisite for reversing gross margin headwinds in recent years.
Shares were down over 11% at US$11.90 in New York