Analyst Jack Allen of Robert W. Baird maintained a Buy rating on Bluebird Bio (BLUE – Research Report), with a price target of $7.00.
Jack Allen has given his Buy rating due to a combination of factors including the extension of Bluebird Bio’s financial runway and positive indicators of the company’s future profitability. The recent agreement for debt financing with Hercules is expected to extend the company’s cash resources for over 24 months, which Allen believes will be well-received by the market. This extension alleviates a previously noted concern regarding Bluebird Bio’s limited financial runway and supports the early stages of product launches. The financing terms also suggest management’s confidence in the profitability of their innovative cell therapies, particularly Lyfgenia, which was recently approved.
Furthermore, the structuring of the debt into tranches based on the company’s performance milestones, such as the number of cell collections for Lyfgenia and achieving certain gross profit targets, underscores a focus on near-term profitability. This setup aligns with investor interests and showcases management’s commitment to financial discipline. Allen also anticipates that upcoming financial disclosures regarding the fourth quarter of 2023 will provide additional details on the progress of product launches, further bolstering confidence in Bluebird Bio’s trajectory and underlying value proposition.
BLUE’s price has also changed dramatically for the past six months – from $3.190 to $1.440, which is a -54.86% drop .
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Bluebird Bio (BLUE) Company Description:
bluebird bio, Inc. is a clinical-stage biotechnology company, which engages in the development of potential gene therapies for severe genetic diseases and cancer. Its integrated product platform includes gene therapy, cancer immunotherapy, and gene editing. Its product pipeline includes Lenti-D, LentiGlobin, BCL11a shRNA, bb2121, and bb21217. The company was founded by Philippe Leboulch and Ronald C. Dorazio on April 16, 1992 and is headquartered in Cambridge, MA.
