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Investing.com - Chardan Capital Markets downgraded Avidity Biosciences (NASDAQ:RNA) stock rating from Buy to Neutral and lowered its price target to $72.00 from $75.00 following the announcement of Novartis’ acquisition of the company. The stock has shown remarkable momentum, with InvestingPro data showing a 53% return over the past six months and is currently trading near its 52-week high.
The acquisition values Avidity at approximately $12.0 billion, with shareholders set to receive $72.00 per share in cash at closing, according to Chardan analyst Keay Nakae. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 9.26, indicating robust liquidity. Get access to 10+ more key insights and detailed financial metrics with an InvestingPro subscription.
The deal excludes Avidity’s early-stage precision cardiology programs, which will be spun out into a separate entity. This includes two announced candidates for cardiomyopathies, AOC1086 and AOC1072, and up to five AOC therapeutic candidates targeting cardiac tissue being developed in collaboration with Bristol Myers Squibb.
Avidity stockholders will receive ownership in the new spin-off company at a ratio of one share for every ten shares of Avidity they currently hold.
Chardan had previously identified Avidity Biosciences as a top pick for 2025 prior to the acquisition announcement.
In other recent news, Novartis announced its intention to acquire Avidity Biosciences for $12 billion in cash, offering $72 per share. This acquisition represents a 46% premium over Avidity’s October 24 closing price and a 62% premium to its 30-day volume-weighted average price. The deal is expected to bolster Novartis’s neuroscience franchise, particularly with Avidity’s neuromuscular assets and AOC platform. Following this announcement, several analyst firms adjusted their ratings for Avidity Biosciences. RBC Capital downgraded the stock from Outperform to Sector Perform, although it raised the price target to $72.00 from $61.00. Similarly, H.C. Wainwright downgraded the stock from Buy to Neutral, while Bernstein downgraded it from Outperform to Market Perform, also raising the price target to $72.00 from $52.00. In contrast, Raymond James upgraded Avidity Biosciences to Strong Buy, reflecting optimism about the acquisition’s potential benefits. The transaction is expected to close in the first half of 2026, pending regulatory and stockholder approval.
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