Wolfe Research initiates Avidity Biosciences stock with outperform rating

Published 17/06/2025, 11:44
Wolfe Research initiates Avidity Biosciences stock with outperform rating

Wolfe Research initiated coverage on Avidity Biosciences (NASDAQ:RNA) with an outperform rating and a price target of $55.00 on Tuesday. Currently trading at $29.80, the stock sits well below analyst targets, which range from $54 to $96. According to InvestingPro data, the company maintains a FAIR financial health score and holds more cash than debt on its balance sheet.

The research firm expects Avidity’s stock to move largely in line with the SPDR S&P Biotech ETF (XBI) in the short term, while noting that upcoming company-specific catalysts may not significantly move the stock.

Wolfe Research anticipates Avidity’s first commercial launch in Duchenne muscular dystrophy (DMD) by 2026, followed by launches for myotonic dystrophy type 1 (DM1) and facioscapulohumeral muscular dystrophy (FSHD) in 2027.

The firm identifies DM1 as the primary value driver for Avidity due to its larger patient population and higher revenue potential, noting it is the only indication not pursuing an accelerated approval path.

Wolfe Research believes Avidity may gain a competitive advantage in DM1 over rival Dyne Therapeutics because Avidity is targeting full approval with more comprehensive data including functional outcome measures, which could strengthen its market position and commercial uptake.

In other recent news, Avidity Biosciences has announced positive topline data from its Phase 1/2 FORTITUDE program for the investigational therapy del-brax, targeting Facioscapulohumeral Muscular Dystrophy (FSHD). The company confirmed with the FDA that an accelerated approval pathway is available for del-brax, and a global Phase 3 FORWARD study has been initiated to support full approval. H.C. Wainwright has maintained a Buy rating on Avidity Biosciences, with a price target of $68, citing the potential of the surrogate biomarker cDUX to expedite approval. BofA Securities has also raised its price target to $54, reflecting optimism about the regulatory updates and the potential market launch in 2027.

The recent stockholders meeting saw the election of three Class II directors and the ratification of Deloitte & Touche LLP as the company’s independent auditor for 2025. Avidity Biosciences reported that the compensation of its named executive officers was approved on an advisory basis. Despite these developments, shares of Avidity Biosciences experienced a decline, although the reasons behind this market reaction were not specified. The company’s efforts to bring the first approved therapy for FSHD to market continue to progress, with the biopharmaceutical industry closely monitoring these advancements.

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

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