Shares of Biohaven Pharmaceutical Holding Co Ltd. (BHVN) plunged 5.11% in Tuesday's pre-market trading session following a significant price target cut by RBC Capital Markets. The move has sparked concerns among investors about the company's near-term prospects.

RBC Capital Markets, a respected voice in the financial sector, reduced its price target for Biohaven from $61 to $54. Despite maintaining an Outperform rating with Speculative Risk on the stock, the lowered expectations have clearly rattled the market. This adjustment represents a notable shift in the investment bank's outlook for the pharmaceutical company.

Despite the sharp decline, it's worth noting that the overall sentiment on Wall Street remains cautiously optimistic. According to analysts polled by FactSet, Biohaven still maintains an average rating of "Buy" with a mean price target of $58.13. This suggests that while the RBC price cut has impacted short-term sentiment, there's still confidence in the company's long-term potential. Investors will be closely watching for any further analyst revisions or company updates that could provide more clarity on Biohaven's future prospects.