2seventy Bio upgraded to Outperform at Leerink on acquisition potential

As previously reported, Leerink upgraded 2seventy Bio (TSVT) to Outperform from Market Perform with a price target of $18, up from $5, after the company announced plans for a reorganization that the firm believes is “squarely focused on selling the Abecma cash flows.” While a commercial company with flat revenues is “not compelling to growth-minded investors,” the firm believes other entities that objectively value the cash flows would see acquisition of 2seventy as “an attractive opportunity.” By “dramatically” cutting expenses through the sale of their R&D unit to Regeneron (REGN), 2seventy has prepared the company for “cleaner value recognition and greater flexibility in strategic optionality,” or in other words a greater breadth of potential acquirers, the analyst added.