Raising $500 million to boost core pipeline! Avidity (RNA.US) receives positive recommendation from Bank of America, with target price increased to $65.

Bank of America Corp released a research report giving Avidity Biosciences Inc. (RNA.US) a "buy" rating and raising its target price from $56 to $65. Based on the company's latest closing price, the new target price implies a 45% upside potential for its stock. The bank stated that the recent pullback in Avidity Biosciences' stock price provides investors with a significant opportunity to increase their holdings in the company. Thanks to the analyst's upgrade of its stock target price and rating, Avidity Biosciences ended a four-day downward trend last Friday with a 9.02% increase in its stock price. This rating and target price adjustment were made in response to Avidity Biosciences' announcement of a planned $500 million stock offering. The raised funds will be used to advance three late-stage clinical trials, build commercial inventory for planned product launches, and expand the commercial operating infrastructure and antibody oligonucleotide conjugate (AOC) technology platform. Regarding the stock offering, Avidity Biosciences has also granted the underwriters an overallotment option: within 30 days of the offering, they can sell an additional $75 million worth of stock. The company also emphasized: "There can be no assurance as to whether the stock offering will be completed, when it will be completed, or the actual size and terms of the offering." Avidity Biosciences is a biopharmaceutical company focused on the development of AOCs, with its core business being the treatment of rare diseases and muscle disorders through RNA therapies. The company currently has three AOC pipelines in clinical stages, primarily targeting diseases such as myotonic dystrophy and Duchenne muscular dystrophy (DMD).