Shares of WEBTOON Entertainment Inc. (WBTN) experienced a significant plunge of 12.79% in pre-market trading on Wednesday, as multiple analysts adjusted their price targets downward for the stock. The sharp decline comes in the wake of revised outlooks from major financial institutions, signaling potential concerns about the company's near-term prospects.

Morgan Stanley led the bearish sentiment by reducing its target price for WEBTOON Entertainment to $10.00 from $10.50. This adjustment was followed by Deutsche Bank, which lowered its price target to $11 from $13, although it maintained a Buy rating on the stock. These downward revisions in price targets from prominent analysts appear to have triggered a significant sell-off in the pre-market trading session.

Despite the negative price action, it's worth noting that the average analyst rating for WEBTOON Entertainment remains overweight, with a mean price target of $13.29, according to FactSet data. This suggests that while short-term expectations have been tempered, analysts still see potential upside for the stock. Investors will likely be closely monitoring the company's performance and any further analyst updates in the coming days to gauge the stock's future direction.