Shares of Ethan Allen Interiors (ETD) experienced a sharp 5.90% decline in pre-market trading on Tuesday, as investors reacted to a downward revision in the company's target price by a prominent analyst firm.

Telsey Advisory Group, a respected voice in the retail sector, maintained its "Market Perform" rating on Ethan Allen but lowered its target price from $32 to $30. This adjustment reflects a more cautious outlook on the company's near-term prospects, potentially due to challenges in the home furnishings market or broader economic concerns.

The significant pre-market drop suggests that investors are recalibrating their expectations for Ethan Allen's future performance. While the maintained "Market Perform" rating indicates that Telsey still sees the company as tracking in line with the sector, the reduced price target has clearly spooked some shareholders. As the market opens, it will be interesting to see if this pre-market plunge persists or if bargain hunters step in to support the stock.