Replimune Group Inc. (REPL) shares unexpectedly plummeted 5.76% in pre-market trading on Tuesday, despite receiving positive analyst upgrades. This contradictory movement has left investors puzzled, as analyst optimism typically leads to stock price increases.

In a surprising turn of events, Piper Sandler upgraded Replimune Group to Overweight from Neutral and significantly raised its price target to $13 from $8. Similarly, JP Morgan upgraded the stock to Neutral from Underweight. These upgrades usually signal increased confidence in a company's prospects and often result in stock price appreciation.

However, the market's reaction seems to be at odds with these positive assessments. The stark contrast between analyst optimism and the stock's performance suggests that other factors may be influencing investor sentiment. It's possible that broader market trends, sector-specific concerns, or undisclosed company-specific issues are overshadowing the analyst upgrades. Investors should note that Barclays maintained a Hold rating on Replimune Group with a considerably lower price target of $3.00, which might be contributing to the market's cautious stance.