While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Coach (NYSE:COH) sank about 2% today after Canaccord Genuity downgraded the luxury handbag company from buy to hold.

So what: Along with the downgrade, analyst Laura Champine lowered her price target to $62 ($from 65), representing about 14% worth of upside to Friday's close. While bargain-hunters might be attracted to Coach's recent weakness, Champine cautions that increasing competition could continue to weigh on the shares.

Now what: Canaccord expects Coach's U.S. same-store sales to decline 6% in the third quarter. "Traffic trends appear to be deteriorating, and we believe Coach will be hard pressed to maintain its leading 30% market share with the current product in stores," noted Canaccord. "We expect fast-growing rival Michael Kors will continue to gain ground. ... Given the limited near-term visibility, we are downgrading shares of Coach to Hold from Buy." Of course, with the stock off about 15% from its 52-week highs and trading at a forward P/E of 12, believers in Coach's brand power might want to use that worry to make a long-term commitment. 

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.