Analyst ratings and price target adjustments are critical factors influencing investor sentiment and stock prices. A downgrade, especially with a significant reduction in the price target, typically results in negative investor perception and can lead to a short-term decline in the stock price. Given the substantial cut from $11.5 to $3.75, this indicates a major revision of the stock's future earnings potential and market position, likely leading to a decrease in stock price as the market adjusts to the new valuation.