Analyst downgrades typically lead to a negative short-term reaction in the stock price as market participants adjust their expectations based on the new analyst outlook. The downgrade from 'Overweight' to 'Neutral' suggests a less bullish view on the stock's future performance, potentially leading to decreased investor confidence and a drop in stock price. The setting of a $16 price target, depending on the previous target and current price, could further influence the stock's short-term movement.