XP Inc. (XP) shares experienced a significant plunge of 7.49% during Tuesday's pre-market trading session, as investors reacted to cautious analyst reports and lowered price targets. The Brazilian financial services platform faced a challenging environment as multiple analysts expressed concerns about the company's near-term prospects.

The sharp decline was primarily triggered by two key analyst actions. Bank of America Securities maintained its Hold rating on XP stock, with analyst Mario Pierry keeping the price target unchanged at $19. This rating suggests a neutral outlook on the company's future performance. Adding to the negative sentiment, HSBC cut its target price for XP from $25 to $24, further contributing to investor concerns.

While specific details behind the analysts' caution were not fully disclosed, such actions often reflect worries about a company's growth prospects, competitive position, or broader market conditions. The significant pre-market sell-off indicates that investors are reassessing their positions in XP Inc. stock, potentially due to concerns about the company's valuation and future performance in light of these analyst perspectives. As the market opens, investors will be closely watching XP Inc.'s stock to see if the downward trend continues or if there's any recovery from this initial plummet.