One of the healthier stocks over the past several days has been biotech Dyne Therapeutics (DYN +4.52%). The company received a positive mention in a broader analyst note on its sector, and investors took this to heart. They traded up the stock to the point where it was 11% higher week-to-date late in Friday's session, according to data compiled by S&P Global Market Intelligence.
Biotechs under the microscope
That research note was published on Sunday, setting the tone for Dyne (and other mentioned healthcare stocks) for the remainder of the week.
Image source: Getty Images.
It was authored by analysts at RBC Capital Markets, and the subject was the performance of such companies in the third calendar quarter of this year. Overall, the RBC team believes sector companies did well during the period, according to reports, and this was reflected in the share price rises many enjoyed.
Gazing into a crystal ball, the pundits wrote that the sector still has potential for further increases. In their view, many investors are rotating out of artificial intelligence (AI)/tech titles in favor of other sectors. Quite a few of these folks have been habitually underweight in biotech.
In the report, the RBC team addressed the prospects of numerous healthcare/biotech stocks. It stated that several were effectively left behind in the third-quarter rally, as investors flocked to peer companies. Among this group are Dyne, Acadia Pharmaceuticals, BioCryst Pharmaceuticals, and Ascendis Pharma.
NASDAQ: DYN
Key Data Points
Large addressable markets
Dyne concentrates on developing therapies for muscle disorders such as muscular dystrophy. Its leading candidate, zeleciment basivarsen, targets a form of the disease called myotonic dystrophy, which -- according to the company -- has an estimated addressable patient population of around 95,000 individuals in the U.S. and the European Union combined.
That alone makes for a potentially quite sizable customer base, creating a fine opportunity for Dyne. I think this is a stock to watch, given such prospects.
