Shares of Relay Therapeutics (RLAY) plummeted 5.24% in Wednesday's trading session, following a significant downgrade from Guggenheim analysts. The sharp decline comes as investors react to a drastic cut in the company's target price, signaling potential challenges ahead for the biotechnology firm.

Guggenheim, a prominent financial services firm, dramatically reduced its target price for Relay Therapeutics from $30 to $10, representing a substantial 67% decrease. This bearish outlook from Wall Street analysts appears to have triggered a sell-off among investors, leading to the stock's steep decline.

While specific reasons for Guggenheim's downgrade were not immediately available, such a significant reduction in target price often reflects concerns about a company's financial performance, market position, or future growth prospects. The healthcare sector, particularly biotechnology firms like Relay Therapeutics, can be subject to volatility based on factors such as clinical trial results, regulatory decisions, or changes in the competitive landscape.