Bank of America says Avidity Biosciences stock has more room to play thanks to the company’s pipeline of multiple treatments for rare muscle diseases. Analyst Jeff Meacham initiated research coverage on the San Diego-based biotechnology company with a buy rating. Meacham’s $40 price target suggests 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 its innovative platform and path to commercialization as early as 2026, we believe RNA is an attractive risk-reward opportunity,” Meacham told clients, referring to the stock ticker. Avidity has a therapeutic platform called antibody-oligonucleotide conjugates that was well-received when it went public in 2020, Meacham said. However, the stock fell due to clinical holds on Avidity’s flagship program to treat DM1, a rare muscle disease. The program, which was tested in the marina trial, recently confirmed long-term data that “helps lift the material overhang in the stock price,” Meacham said. And that could lead to multiple future catalysts in 2024, which could fuel further gains, analysts said. Meacham said these catalysts are tied to two other drugs in the muscle disease field for which data is expected to be reported this year. One is related to the treatment of Duchenne muscular dystrophy, and he is involved in a clinical trial for facioscapulohumeral muscular dystrophy. Taken together, Meacham said the company expects “robust” demand for these products, with peak risk-adjusted sales expected to reach $2.3 billion by 2033. Stated. “We believe these clinical data updates should further support the value of the pipeline and platform and help drive investors’ interest in 2024,” he said. Biopharma stocks have already soared more than 180% so far in 2024, erasing losses from last year’s more than 59% decline. The stock was offered to the public at $18 per share. RNA 1Y Mountain Avidity, 1 year