2seventy Bio initiated with a Buy at Citi

Citi analyst Samantha Semenkow initiated coverage of 2seventy Bio with a Buy rating and $13 price target. 2seventy is trading near cash value with a negative enterprise value, implying zero value in the stock for the company’s commercial asset, Abecma, the analyst tells investors in a research note. The firm acknowledges recent competitive dynamics have impacted Abecma utilization in late-line myeloma, but with the pending December FDA action date for label expansion into earlier lines of myeloma, it anticipates the expanded patient population will once again create a capacity-constrained environment that Abecma will benefit from.