Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - RBC Capital downgraded Avidity Biosciences (NASDAQ:RNA) stock rating from Outperform to Sector Perform while raising its price target to $72.00 from $61.00. The stock, which has surged over 64% year-to-date according to InvestingPro data, is currently trading above its Fair Value.
The rating change follows Novartis’s announcement on Monday of its proposed acquisition of Avidity Biosciences for $12 billion, representing $72 per share in cash.
RBC Capital adjusted its price target to reflect the terms of the proposed deal, which values the biotechnology company at a premium to its previous trading price.
The downgrade to Sector Perform indicates RBC Capital’s expectation that Avidity’s stock will trade approximately in line with the proposed acquisition price going forward.
Novartis’s cash offer represents one of the larger acquisitions in the biotechnology sector this year, adding Avidity’s RNA-targeted therapeutic capabilities to its portfolio.
In other recent news, Novartis has announced its acquisition of Avidity Biosciences for $12 billion in cash, a move that enhances its neuroscience portfolio with late-stage programs focused on genetic neuromuscular diseases. The agreement values Avidity at $72 per share, a 46% premium to its October 24 closing price, and is expected to finalize in the first half of 2026, pending regulatory and stockholder approvals. This acquisition has prompted mixed reactions from analysts. H.C. Wainwright downgraded Avidity Biosciences from Buy to Neutral, while Raymond James upgraded the stock to Strong Buy, emphasizing the strategic value of the neuromuscular assets acquired by Novartis. Bernstein also adjusted its rating from Outperform to Market Perform, raising its price target to $72. Additionally, Avidity Biosciences has announced a delay in its submission of the investigational drug delpacibart zotadirsen for Duchenne muscular dystrophy, now expected in the first quarter of 2026. The delay follows a positive meeting with the FDA, allowing more time to gather additional data requested by regulators. These recent developments highlight significant changes in Avidity Biosciences’ strategic direction.
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