Hamilton Lane Inc (HLNE) shares plummeted 5.02% during intraday trading on Friday, despite the company reporting better-than-expected earnings for the quarter ended March 31. The stock's sharp decline comes in the wake of target price cuts from major Wall Street firms, signaling a potential reassessment of the company's valuation.

The investment management firm reported adjusted earnings of $1.21 per share, surpassing the mean analyst expectation of $1.17. This represents a beat, although it falls short of the $1.38 per share reported in the same quarter last year. Revenue rose 12.1% to $197.97 million, significantly exceeding analyst projections of $170.71 million. Despite these positive results, investors appear to be focusing on the longer-term outlook for the company.

Adding to the downward pressure, both JP Morgan and Wells Fargo lowered their price targets for Hamilton Lane. JP Morgan cut its target from $168 to $153, while Wells Fargo reduced its target from $166 to $161. These reductions, coupled with a consensus "hold" rating from analysts, suggest a more cautious stance on the stock's future performance. The current median 12-month price target stands at $159.00, indicating limited upside potential from current levels. As the market digests these mixed signals – strong quarterly performance against a backdrop of analyst caution – Hamilton Lane shares continue to face selling pressure in Friday's trading session.