Shares of Similarweb Ltd. (SMWB) took a significant hit on Thursday, plummeting 5.12% during intraday trading. The sharp decline came in the wake of a notable price target cut by a prominent Wall Street firm.

Jefferies, a well-respected financial services company, revised its outlook on Similarweb, reducing the target price from $14 to $11. This represents a substantial 21.4% reduction in the expected value of the stock. The announcement, made before the market opened, appears to have had an immediate and significant impact on investor sentiment.

The downward revision by Jefferies likely sparked concerns among investors about Similarweb's growth prospects or valuation. While the specific reasons behind the analyst's decision were not provided in the available information, such price target cuts are often based on factors like changing market conditions, company-specific challenges, or shifts in industry dynamics. As Similarweb operates in the competitive digital intelligence and analytics space, any perceived headwinds could quickly translate into stock price volatility.