Dyne (DYN) Jumps 41% as Jefferies Bets Firm to Benefit from Novartis-Avidity Merger

We recently published 10 Big Names Crushing Wall Street. Dyne Therapeutics, Inc. (NASDAQ:DYN) is one of the top-performing stocks on Monday.

Dyne Therapeutics soared by 41.18 percent on Monday to close at $24.17 apiece following a comment from investment firm Jefferies that it would likewise benefit from Novartis’ $12 billion planned acquisition of its peer, Avidity Biosciences.

In a statement over the weekend, Novartis announced that it would acquire shares of Avidity at a price of $72 apiece, representing a 46 percent upside from its closing price on October 24.

“We view DYN as a prime beneficiary of Novartis’ move into RNA therapeutics,” Jefferies said in its market note.

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It also issued a “buy” recommendation for Dyne Therapeutics, Inc. (NASDAQ:DYN) at a price of $50, marking a 107 percent upside potential from its latest closing price.

Additionally, Jefferies said the upgrade was based on the belief that Dyne Therapeutics, Inc. (NASDAQ:DYN) trades at a “cheap” $2.4 billion market capitalization despite potentially first-to-market assets and a $4.5–6 billion implied valuation.

Both Dyne Therapeutics, Inc. (NASDAQ:DYN) and Avidity are engaged in the development of therapies for neuromuscular diseases such as DM1 (myotonic dystrophy type 1), DMD (Duchenne muscular dystrophy), and FSHD (facioscapulohumeral muscular dystrophy).

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Disclosure: None. This article is originally published at Insider Monkey.