Zai Lab Ltd (ZLAB) plummeted 5.48% in the pre-market trading session on Monday, following a downgrade by BofA Securities analysts.
BofA Securities cut its rating on Zai Lab to Neutral from Buy, citing concerns over the growth slowdown of the company's core products. The bank also raised its price target on the stock to $36.10 from $29, which is still significantly below the current trading levels.
The downgrade from a major investment bank like BofA likely triggered a wave of selling pressure on Zai Lab shares. Analyst downgrades and lowered price targets can negatively impact investor sentiment and lead to stock price declines, especially for growth companies like Zai Lab.
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