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Leerink has upgraded 2seventy bio (NASDAQ:TSVT) to outperform, citing the company’s attractiveness as an acquisition target.
“While a commercial company with flat revenues is not compelling to growth-minded investors, we believe the other entities that objectively value TSVT cash flows would see acquisition of TSVT as an attractive opportunity,” the analysts wrote in a note.
Leerink noted that 2seventy bio is “dramatically” cutting expenses by selling its R&D unit to Regeneron (REGN), which prepares it for “cleaner value recognition and greater flexibility in strategic optionality, e.g. breadth of potential acquirers.”
Leerink raised its price target for the stock to $18 from $5.
