Bank of America says Avidity Biosciences stock has more room to rise thanks to the company’s diverse pipeline of treatments for rare muscle diseases. Analyst Geoff Meacham covers the San Diego-based biotech company with a buy rating. Meacham’s $40 price target implies a potential upside of 56% from Thursday’s closing price, building on an already strong year in which the stock has more than doubled. “With an innovative platform and a path to commercialization as early as 2026, we believe RNA is an attractive risk-reward opportunity,” Meacham told clients, citing the stock’s ticker. Avidity has a therapeutic platform, antibody oligonucleotide conjugates, that was well received when it launched in 2020, Meacham said. However, the stock price was affected by the clinical shelving of Avidity’s leading program to treat the rare muscle disease DM1. Meacham said the program was tested in a coastal trial and the long-term data seen recently “helped lift key overhangs” on the stock. Analysts note that this could set the stage for multiple catalysts on the horizon in 2024, driving the stock price even higher. Meacham said the catalysts are related to two other drugs in the muscle disease area and data are expected to be reported this year. One is for a treatment for Duchenne muscular dystrophy and the other is related to a trial for facioscapulohumeral muscular dystrophy. Overall, Meacham said the company could see “strong” demand for these products, with peak risk-adjusted sales expected to reach $2.3 billion by 2033. , and should help drive investor interest into 2024,” he said. The biotech pharmaceutical stock has soared more than 180% so far in 2024, erasing last year’s loss of more than 59%. The stock is listed at $18 per share. RNA 1Y mountain Avidity, 1 year
