William Blair analyst Sami Corwin has maintained their neutral stance on BLUE stock, giving a Hold rating today.
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Sami Corwin has given his Hold rating due to a combination of factors surrounding Bluebird Bio’s recent developments. The acquisition by Carlyle and SK Capital Partners, which involves a significant discount on the stock’s market price, has influenced the rating. The deal includes a contingent value right that is dependent on Bluebird achieving substantial sales milestones, which Sami views as unlikely given the company’s current financial projections.
The strategic shift from public to private appears to be a necessary move for Bluebird, considering their cash constraints and lack of immediate profitability from their existing product launches. However, the substantial discount on the stock’s market value and the low probability of meeting the sales targets for the contingent value right contribute to the cautious stance. Therefore, while the acquisition provides a potential pathway for future growth, the uncertainties and current market conditions suggest a hold position is warranted.
According to TipRanks, Corwin is a 4-star analyst with an average return of 6.7% and a 38.10% success rate. Corwin covers the Healthcare sector, focusing on stocks such as CARGO Therapeutics, Inc., Sarepta Therapeutics, and PTC Therapeutics.
In another report released today, Robert W. Baird also downgraded the stock to a Hold with a $5.00 price target.