Shares of Cogent Communications Holdings Inc (CCOI) tumbled 5.22% in pre-market trading on Tuesday, following a significant downgrade from Citigroup. The sharp decline comes as investors react to the revised outlook for the communication services company.

Citigroup analysts cut their rating on Cogent from Buy to Neutral, citing concerns about slower progress and potential risks to the company's performance. In a notable move, the investment bank also slashed its price target for Cogent by nearly half, reducing it from $67 to $33. This substantial reduction in the price target suggests a considerably more cautious stance on Cogent's near-term prospects.

Prior to this downgrade, Cogent had maintained an overall positive outlook among analysts. According to FactSet, the company had an average rating of overweight with a mean price target of $52.55. The stark contrast between the previous consensus and Citigroup's new position has likely contributed to the significant pre-market sell-off, as investors reassess their expectations for Cogent's future performance in light of this new analysis.