Street Calls of the Week
Investing.com - Roth/MKM initiated coverage on Avidity Biosciences (NASDAQ:RNA) with a Buy rating and a price target of $62.00 on Wednesday. The stock, currently trading at $41.44, has shown strong momentum with a 22.5% gain over the past six months, despite a recent 10.7% pullback last week. According to InvestingPro analysis, analyst targets range from $52 to $96, suggesting significant upside potential.
The research firm cited Avidity’s first-mover advantages with three genetic medicines—Del-zota for DMD44, Del-desiran for DM1, and Del-brax for FSHD—as key drivers behind the positive outlook.
Roth/MKM highlighted the company’s broad platform potential, which has been validated by both in-house data and external partnerships, strengthening the investment case.
The firm noted Avidity’s strong financial position, with approximately $1.2 billion in cash as of the second quarter of 2025, excluding an additional $690 million from equity financing.
Roth/MKM also identified Avidity as a potential acquisition target due to the broad therapeutic potential of its platform and the de-risked nature of all three of its programs.
In other recent news, Avidity Biosciences has successfully closed a public offering, raising $690 million in gross proceeds through the sale of 17.25 million shares of common stock at $40 per share. This offering included the full exercise of the underwriters’ option to purchase an additional 2.25 million shares. The company previously announced a plan to offer $500 million of common stock, with an option for underwriters to purchase up to an additional $75 million in shares. Additionally, Avidity Biosciences had priced an upsized public offering at $600 million, expected to close around mid-September 2025.
In terms of analyst activity, H.C. Wainwright has raised its price target on Avidity Biosciences to $87, maintaining a Buy rating. This adjustment follows encouraging data from studies on Duchenne muscular dystrophy, showing positive results in reversing disease progression. Similarly, BofA Securities increased its price target to $65, also maintaining a Buy rating, following pressure on shares after the stock offering announcement. These developments highlight significant investor interest and analyst confidence in Avidity Biosciences’ ongoing projects and financial strategies.
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