Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - BofA Securities raised its price target on Avidity Biosciences (NASDAQ:RNA) to $65.00 from $56.00 on Friday, while maintaining a Buy rating on the stock. The new target represents significant upside potential from the current price of $44, with analyst targets ranging from $52 to $96.
The price target increase follows a period of pressure on RNA shares after the company announced a common stock offering, which came shortly after positive Duchenne muscular dystrophy (DMD) data earlier in the week. According to InvestingPro data, the stock has declined 18.5% over the past week, though it maintains a strong 25.8% gain over the past six months.
BofA Securities noted that Avidity’s management indicated the capital raise was motivated by the company’s need to build inventory ahead of potential launches in three areas: myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and DMD.
The firm highlighted that Avidity has established long-term supply contracts with Lonza, and the additional funds will also support the development of commercial infrastructure.
BofA Securities views the current weakness in Avidity shares as "a particularly attractive buying opportunity" given the high unmet treatment needs for all three target indications and supportive clinical data.
In other recent news, Avidity Biosciences has announced the pricing of an upsized public offering, raising approximately $600 million by selling 15 million shares at $40.00 each. This offering is expected to close around mid-September 2025, with an option for underwriters to purchase an additional 2.25 million shares. The company had previously announced plans for a $500 million public stock offering, with the intention to use the proceeds for advancing clinical programs and expanding commercial infrastructure. In analyst updates, TD Cowen has maintained a Buy rating with a $78.00 price target following positive data from the EXPLORE44-OLE trial of Avidity’s drug, del-zota, for Duchenne muscular dystrophy (DMD). Raymond James also reiterated a Strong Buy rating and a $65.00 price target, expressing confidence in del-zota’s potential for approval and establishing an exon-skipping franchise. Furthermore, Avidity reported promising results from its DMD44 trial, showing that del-zota demonstrated disease reversal in patients, further supporting its potential efficacy. These developments highlight significant progress and interest in Avidity’s ongoing projects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.