Sometimes Wall Street analysts change their minds, and Tuesday brought some particularly harsh reassessments. Three stocks faced downgrades from major firms, with one biotech company getting absolutely hammered.

Leading the downgrade parade was Mereo BioPharma Group plc (MREO), which saw Jefferies analyst Maury Raycroft flip from bullish to neutral. But it wasn't just the rating change that stung. Raycroft slashed his price target from $7 all the way down to $0.50, a reduction that speaks volumes about deteriorating expectations. The stock closed Monday at $0.2854, already trading well below even the reduced target.

DigitalBridge Group, Inc. (DBRG) had an even worse day, getting downgraded twice by different analysts. RBC Capital's Jonathan Atkin moved the stock from Outperform to Sector Perform, cutting his price target from $23 to $16. Not long after, TD Cowen analyst Michael Elias piled on, downgrading DigitalBridge from Buy to Hold with a $16 price target of his own. The stock closed Monday at $15.26, essentially in line with where analysts now see it heading.

When multiple analysts independently reach similar conclusions on the same day, it's usually a sign that something fundamental has shifted in how Wall Street views the company's prospects. For DigitalBridge investors, seeing two downgrades land simultaneously can't feel great, even if the stock is already trading near those reduced targets.

These rating changes reflect the constant recalibration that happens on Wall Street as analysts digest new information, company performance, and market conditions. Sometimes the reassessment is modest. Other times, like with Mereo BioPharma's price target getting cut by over 90%, it's a complete rethinking of the investment thesis.