Analyst ratings can have a significant impact on stock prices. A downgrade from Buy to Hold suggests that the analyst no longer sees the stock outperforming the market or its peers. While not as severe as a sell rating, this change can lead to some investors reevaluating their positions, potentially leading to a slight decrease in stock price or increased volatility. However, the impact may be muted if the market has already anticipated the downgrade or if other analysts maintain more favorable ratings.