Analyst ratings and price target adjustments by prominent financial institutions like Morgan Stanley can significantly influence investor sentiment and stock prices. The downgrade from Overweight to Equal-Weight suggests a neutral outlook on the stock, potentially leading to reduced investor confidence and selling pressure. The reduction in the price target from $31 to $24 further emphasizes a lowered expectation for the stock's performance, likely contributing to the short-term negative impact on XP Inc.'s share price.