Summit Hotel Properties (INN) experienced a significant pre-market plunge of 5.43% on Tuesday, as investors reacted to a downgrade from Bank of America Securities. The stock's decline comes in the wake of a revised outlook that has raised concerns about the company's near-term prospects.

BofA analyst Dany Asad downgraded Summit Hotel Properties from Neutral to Underperform, signaling a more pessimistic view on the stock's potential. Adding to the bearish sentiment, the price target was substantially reduced from $5.75 to $4.50, suggesting limited upside and potential further downside for the shares.

This downgrade stands in contrast to the overall market sentiment, as FactSet data indicates that Summit Hotel Properties still maintains an average rating of Hold among analysts, with a mean price target of $6. The divergence in opinions highlights the uncertainty surrounding the hospitality sector and Summit Hotel Properties' position within it, prompting investors to reassess their positions in pre-market trading.