H World Group's stock plummeted 5% in intraday trading on Wednesday, following HSBC's decision to downgrade the company from a "Buy" to a "Hold" rating and lower its price target to HK$25.27 (around $32.40).

The downgrade and price target cut by HSBC, a prominent investment bank, likely spooked investors and contributed to the sharp decline in H World Group's share price. While the specific reasons behind HSBC's move were not disclosed, analysts often downgrade a company's rating and lower their price targets when they anticipate potential challenges or risks to the company's growth prospects or financial performance.

Despite the downgrade, it's worth noting that H World Group still maintains an average rating of "Buy" and a mean price target of $43.76, according to analysts polled by FactSet. This suggests that while HSBC has adopted a more cautious stance, other analysts remain optimistic about the company's future outlook.