Goldman Sachs resumes coverage on Avidity Biosciences stock with Buy rating

Investing.com - Goldman Sachs resumed coverage on Avidity Biosciences (NASDAQ:RNA) with a Buy rating and a $55.00 price target on Thursday. According to InvestingPro data, this target aligns with the broader analyst consensus, as the stock has received upward earnings revisions from 7 analysts, with price targets ranging from $50 to $96.

The investment bank’s decision reflects its positive outlook on the company’s platform technology, which it considers "de-risked" despite acknowledging potential regulatory timeline uncertainties. The company maintains a strong financial position, with more cash than debt on its balance sheet and a healthy current ratio of 16.9x.

Goldman Sachs based its valuation on a discounted cash flow (DCF) model featuring a 16% discount rate and 3% terminal growth rate, which it deemed appropriate given the company’s current position.

The firm identified several key downside risks for Avidity, including the possibility of worse-than-expected clinical data for del-desiran in DM1 and regulatory alignment challenges with the FDA, particularly for programs in FSHD.

Competition was also highlighted as a potential risk factor that could impact Avidity’s market position and growth prospects.

In other recent news, Avidity Biosciences has been the focus of several analyst updates and company developments. Cantor Fitzgerald reiterated an overweight rating on Avidity, maintaining a price target of $96.00, citing confidence in the company’s leadership and potential for long-term success in treating rare muscle diseases. Wolfe Research initiated coverage with an outperform rating and a $55.00 price target, highlighting the potential for Avidity’s first commercial launch in Duchenne muscular dystrophy by 2026. Meanwhile, H.C. Wainwright reaffirmed a Buy rating with a $68.00 price target, emphasizing the significance of Avidity’s surrogate biomarker, cDUX, in accelerating drug approval processes.

At Avidity’s recent 2025 Annual Meeting of Stockholders, three Class II directors were elected, and Deloitte & Touche LLP was ratified as the independent accounting firm for the fiscal year. Additionally, Avidity announced positive topline data from its Phase 1/2 FORTITUDE trial for treating facioscapulohumeral muscular dystrophy, with plans to initiate a Phase 3 FORWARD study. Despite these positive developments, the company’s stock experienced a downturn, which analysts suggest may be influenced by broader market conditions or other undisclosed factors. BofA Securities raised its price target to $54.00, maintaining a Buy rating, and expressed cautious optimism about the regulatory path for Avidity’s therapy, del-brax. These developments highlight Avidity’s continued progress in advancing treatments for rare neuromuscular diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.