Vikram Purohit, an analyst from Morgan Stanley, maintained the Hold rating on 2seventy bio (TSVT – Research Report). The associated price target is $6.00.
Vikram Purohit’s rating is based on a combination of factors, primarily revolving around the acquisition agreement between 2seventy bio and Bristol-Myers Squibb (BMS). The proposed merger, which offers a significant premium over the current stock price, suggests a favorable outcome for shareholders. However, the competitive landscape for 2seventy bio’s key product, Abecma, has been challenging, with increased competition from other BCMA therapies impacting its market position and sales.
Despite these challenges, the acquisition by BMS is expected to proceed smoothly, given the existing partnership between the two companies. The transaction is anticipated to close on time, and the premium offered in the deal is likely to be well-received by investors. The Hold rating reflects the balance between the attractive acquisition terms and the ongoing competitive pressures faced by 2seventy bio in the market.
In another report released yesterday, Leerink Partners also downgraded the stock to a Hold with a $5.00 price target.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TSVT in relation to earlier this year.