Shares of Viavi Solutions (NASDAQ: VIAV) plummeted 13.05% in pre-market trading on Friday, following a bearish price target adjustment from Morgan Stanley. The investment bank raised its target price slightly to $8.60 from $8 but maintained an Underweight rating on the stock, signaling continued skepticism about the company's near-term prospects.

The negative sentiment from Morgan Stanley stands in stark contrast to the more optimistic views held by other analysts. According to FactSet, the average rating for Viavi Solutions remains Overweight, with a mean price target of $12.26. This discrepancy highlights the divergent opinions on Wall Street regarding the company's future performance.

Adding to the mixed signals, other financial institutions have also adjusted their price targets for Viavi Solutions. UBS cut its target price to $11 from $11.50, while Rosenblatt Securities raised its target to $13.5 from $12. These conflicting adjustments may be contributing to investor uncertainty and volatility in the stock price.

The significant pre-market drop suggests that investors are giving considerable weight to Morgan Stanley's pessimistic outlook. However, it's worth noting that a recent analysis by Simply Wall St suggests that Viavi Solutions could be undervalued, with a fair value estimate of $17.10 per share. This valuation discrepancy underscores the complexity of the current market sentiment surrounding the company and may present an opportunity for investors willing to look beyond short-term volatility.