Shares of Biohaven Pharmaceutical Holding Co Ltd. (BHVN) plummeted 5.11% during Tuesday's intraday trading session, following a downward revision in its price target by RBC Capital Markets. The significant drop highlights investors' immediate reaction to the adjusted valuation.
RBC Capital Markets reduced its price target for Biohaven from $61 to $54, maintaining an Outperform rating with Speculative Risk. This adjustment appears to have triggered a sell-off, as investors reassessed their positions in light of the lowered expectations from a major financial institution.
Despite the sharp decline, it's worth noting that the overall sentiment among analysts remains positive. According to FactSet, Biohaven still maintains an average "buy" rating, with a mean price target of $58.13. This suggests that while the stock is facing short-term pressure, many analysts continue to see potential upside for the pharmaceutical company in the longer term.
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