TD Cowen analyst Ritu Baral downgraded the rating on Avidity Biosciences to a Hold today, setting a price target of $74.00.
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Ritu Baral has given his Hold rating due to a combination of factors surrounding the acquisition of Avidity Biosciences by NVS. The acquisition deal, which values Avidity Biosciences at $72 per share in cash, represents a significant premium over the recent stock price, but also indicates a shift in the company’s strategic direction.
The decision to downgrade the rating from Buy to Hold reflects the terms of the acquisition, which include the spin-out of Avidity’s preclinical cardiac and collaboration assets into a separate entity, SpinCo. This restructuring and the associated uncertainties, along with the adjusted price target of $74, contribute to the Hold rating as the market evaluates the implications of the acquisition and the future potential of SpinCo.
In another report released today, Citi also downgraded the stock to a Hold with a $72.00 price target.