Hold Rating on Avidity Biosciences Amid Novartis Acquisition Uncertainty

Needham analyst Joseph Stringer has maintained their neutral stance on RNA stock, giving a Hold rating on October 29.

Joseph Stringer has given his Hold rating due to a combination of factors surrounding Avidity Biosciences. One of the primary reasons is the recent announcement of a proposed acquisition by Novartis, which was made public in October. This acquisition has created a level of uncertainty regarding the future direction of the company, making it prudent to maintain a neutral stance.
Additionally, the absence of a competitive bid prior to the expected transaction closing further supports the Hold rating. Without any competing offers, the acquisition process is likely to proceed as planned, leaving limited upside potential for the stock in the near term. Therefore, Joseph Stringer advises investors to hold their positions until more clarity emerges post-acquisition.

In another report released on October 29, TD Cowen also downgraded the stock to a Hold with a $74.00 price target.