Shares of Aurinia Pharmaceuticals (AUPH) plunged 5.05% in pre-market trading on Wednesday following a downgrade by RBC Capital Markets. The Canadian multinational bank revised its rating on the biopharmaceutical company from Outperform to Sector Perform, signaling a less optimistic outlook on the stock's near-term performance.

Despite the downgrade, RBC Capital Markets raised its price target for Aurinia Pharmaceuticals to $15 from $9, suggesting potential long-term value in the stock. This mixed signal from the analysts likely contributed to the significant market reaction, as investors reassessed their positions based on the new evaluation.

The downgrade comes at a time when Aurinia Pharmaceuticals had an average rating of overweight and a mean price target of $14.71, according to analysts polled by FactSet. The contrast between RBC's downgrade and the overall positive sentiment from other analysts may have added to investor uncertainty, further fueling the stock's decline. As the market digests this new information, investors will be closely watching for any additional analyst revisions or company updates that could impact Aurinia Pharmaceuticals' stock performance.