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Investing.com - RBC Capital has raised its price target on Adverum Biotechnologies (NASDAQ:ADVM) to $4.00 from $3.00 while maintaining a Sector Perform rating on the stock. The stock, currently trading at $4.15, has shown strong momentum with a nearly 49% price return over the past six months, despite the company’s weak financial health score according to InvestingPro data.
The price target adjustment follows Eli Lilly’s proposed acquisition of Adverum for $3.56 per share in cash, representing approximately a $75 million valuation.
The deal also includes one non-transferable contingent value right (CVR) valued at up to $8.91 per share, contingent upon the achievement of two milestone events, bringing the total potential per-share consideration to $12.47.
RBC Capital analyst Lisa Walter indicated the price target adjustment reflects expectations that Adverum stock will trade roughly in line with the proposed acquisition price going forward.
The acquisition announcement was made on Friday, with the cash portion of the deal representing the immediate value while the CVR component offers potential additional returns based on future performance milestones.
In other recent news, Adverum Biotechnologies announced an acquisition agreement with Eli Lilly, valuing the company at up to $12.47 per share. The deal includes an upfront payment of $3.56 per share in cash and a contingent value right (CVR) potentially worth an additional $8.91 per share, contingent on achieving specific milestones. Following this announcement, Chardan Capital Markets downgraded Adverum’s stock rating from Buy to Neutral and reduced its price target from $33.00 to $5.00. Meanwhile, Mizuho reiterated its Outperform rating on Adverum, maintaining a $12.00 price target, citing positive trial updates from the company’s Phase 3 ARTEMIS study. Adverum reported that patient screening for the ARTEMIS study is complete, with enrollment expected to conclude ahead of schedule in December. The company has moved up its timeline for releasing top-line data to the first quarter of 2027. These developments come as Eli Lilly aims to expand its genetic medicine portfolio through the acquisition.
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