Full Truck Alliance (YMM) shares plummeted 5.04% in pre-market trading on Thursday, following a price target reduction by Citi. The significant drop comes as investors react to the adjusted valuation of the company.

Citi lowered its price target on Full Truck Alliance from $16.50 to $16, representing a modest decrease in the firm's valuation of the company. Despite the reduction, Citi maintained its Buy rating on YMM shares, suggesting continued confidence in the company's long-term prospects.

The price target adjustment comes after Full Truck Alliance reportedly delivered solid results, though specific details were not provided. The market's sharp negative reaction to the news highlights the sensitivity of investor sentiment, even when faced with relatively minor changes in analyst outlooks. As trading progresses, it remains to be seen whether the stock will recover from this pre-market decline or if the downward pressure will persist throughout the session.