Avidity, BridgeBio, Coty, SAGE, Alkermes: Trending by Analysts

Analysts are intrested in these 5 stocks: ( (RNA) ), ( (BBIO) ), ( (COTY) ), ( (SAGE) ) and ( (ALKS) ). Here is a breakdown of their recent ratings and the rationale behind them.

Avidity Biosciences is capturing attention with its focus on treating rare muscle diseases like DM1, DMD, and FSHD. Analyst Andy Chen has initiated coverage with a ‘Buy’ recommendation, highlighting the potential of DM1 as a primary value driver. While upcoming updates on DM1 and DMD are seen as positive, they are not expected to be major catalysts. The success of Avidity hinges on market uptake, especially in DM1 and FSHD, with a notable BLA filing anticipated this year. Despite competition from Dyne, Avidity is expected to capture significant market share due to stronger functional data.

BridgeBio Pharma is making waves with its TTR product, which is expected to drive near-term stock performance. Analyst Andy Chen has given a ‘Buy’ rating, emphasizing the importance of TTR, which accounts for a significant portion of the stock’s valuation. While the pipeline faces competition, particularly in achondroplasia, the narrative around TTR and its affordability is expected to propel the stock. However, the long-term success will depend on shifting the narrative beyond rare diseases and capitalizing on commercial opportunities.

Coty is in the spotlight following an upgrade to ‘Buy’ by analyst Filippo Falorni. The company is reportedly in early discussions to sell parts of its business, which has sparked investor interest. The potential sale of its Prestige and Consumer Beauty businesses could unlock significant value, especially given Coty’s progress in debt deleveraging. The stock’s valuation appears compelling, with a sum-of-the-parts approach suggesting a higher share price. The market is eagerly watching for developments in these discussions.

SAGE Therapeutics has seen a downgrade to ‘Hold’ by analyst David Amsellem following the announcement of its acquisition by Supernus. The proposed acquisition price reflects a cautious outlook, with the deal potentially worth more based on contingent value rights. The focus is on Zurzuvae, a product showing promising growth in prescriptions, particularly for post-partum depression. While the acquisition by Supernus is seen as the endgame for SAGE, the market is keen on how the commercial strategy will evolve under new ownership.

Alkermes is gaining traction with an upgrade to ‘Buy’ by analyst Ashwani Verma, driven by optimism around its ALKS-2680 treatment for narcolepsy. A recent physician survey supports the potential of ALKS-2680, despite some concerns about safety. The stock’s valuation is seen as attractive, with expectations of strong efficacy and clean safety data in upcoming studies. The market is optimistic about Alkermes’ ability to capture a significant share in the narcolepsy treatment space, with a raised price target reflecting this positive outlook.