Pershing Square Inc. experienced significant sell-off pressure following a notable analyst downgrade from BofA Securities, which cut its recommendation on the company to Underperform while aggressively slashing its price objective. This research update exacerbated a growing wave of Wall Street skepticism, following earlier negative coverage actions and price target reductions from major brokerages such as Citi and Wells Fargo, severely weighing on market sentiment for the asset manager.

The core driver behind the intensified selling lies in valuation concerns paired with underlying portfolio underperformance. Analysts emphasized that the firm trades at an exceptionally high valuation multiple relative to traditional and alternative…