Absolutely they do. Publicly traded companies are affected by what’s going on in the broader economy. For example, inflation can lead to higher producer costs. Ideally a company could pass along these costs to consumers to protect their profit margins. However, this isn’t always possible. Geopolitical events can impact companies that have an international supply chain. And sometimes, companies just miss on revenue and earnings forecasts for no discernible reason.
In any of these cases, analysts are challenged to reconsidering their rating. In some cases, an analyst may raise or lower their price target without changing their rating.