BTIG Reiterates Their Buy Rating on Bluebird Bio

By Carrie Williams

In a report released yesterday, Dane Leone from BTIG reiterated a Buy rating on Bluebird Bio (NASDAQ: BLUE), with a price target of $112. The company’s shares closed yesterday at $75.35.

Leone commented:

“Heading into the ASCO update for bb2121, BLUE stock has been highly volatile, as there seems to be broadly inconsistent expectations for bb2121 in myeloma across the investment community. We focus our attention on stringent Complete Response (sCR) rates that will be reported within the higher therapeutic doses, and level ‘response’ against rates of Grade 3+ CRS and Neurotoxicity. Given the ubiquity of BCMA expression in myeloma, we think that the balance of toxicity will be more important to the potential of bb2121. We maintain our Buy recommendation.   Hurdle rate for disrupting the transplant axis in the 1 st line setting is high. Based upon the work of Kapoor and Gertz et al. (2013) evaluating sCRs following autologous stem cell therapy (ASCT), we would benchmark the level of sCR rates needed to be achieved by bb2121 to be markedly above +25% to support a notion that the therapy could be disruptive in the transplant setting.”

According to TipRanks.com, Leone is a 5-star analyst with an average return of 11.6% and a 68.9% success rate. Leone covers the Healthcare sector, focusing on stocks such as Corvus Pharmaceuticals Inc, Quest Diagnostics Inc, and Trillium Therapeutics.

Currently, the analyst consensus on Bluebird Bio is Moderate Buy and the average price target is $88.75, representing a 17.8% upside.

In a report issued on May 19, Cowen & Co. also reiterated a Buy rating on the stock.

Based on Bluebird Bio’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $6.83 million and GAAP net loss of $68.71 million. In comparison, last year the company earned revenue of $1.5 million and had a GAAP net loss of $56.27 million.

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bluebird bio, Inc. is a clinical-stage biotechnology company. Its integrated product platform includes gene therapy, cancer immunotherapy, and gene editing. The company was founded by Philippe Leboulch and Ronald C. Dorazio on April 16, 1992 and is headquartered in Cambridge, MA.