Citi cuts 2Seventy Bio stock target to $9, maintains Buy rating

Published 06/02/2025, 23:00
Citi cuts 2Seventy Bio stock target to $9, maintains Buy rating

On Thursday, Citi analyst Samantha Semenkow revised the price target for 2Seventy Bio Inc. (NASDAQ:TSVT) shares to $9.00, a decrease from the previous $10.00 target, while upholding a Buy rating on the stock. Currently trading at $2.58 with a market capitalization of $141 million, InvestingPro analysis indicates the stock is slightly undervalued. The adjustment comes after Bristol Myers (NYSE:BMY) Squibb (BMS) reported fiscal year 2024 revenues for Abecma, a drug commercialized in partnership with 2Seventy Bio. The reported revenue of $242 million aligns with 2Seventy’s prior guidance, which estimated around $240 million to $250 million.

BMS’s recent earnings call revealed a 23% decline in fourth-quarter 2024 Abecma sales, which dropped to $59 million from $77 million in the third quarter. The decrease was anticipated by management due to seasonal effects during the holiday period. InvestingPro data shows the company’s overall revenue declined by 68.7% in the last twelve months, though its strong current ratio of 4.95 indicates solid short-term liquidity. Despite the competitive landscape for multiple myeloma treatments, BMS emphasized their ongoing commitment to Abecma’s commercial success.

Looking ahead, 2Seventy Bio anticipates reaching a quarterly breakeven point for Abecma by the end of 2025. The company expects to provide further insights on the drug’s growth prospects for 2025 during its earnings call scheduled for mid-March.

Semenkow’s report includes revised estimates for Abecma’s revenue and operational expenses, leading to the lowered price target. Despite the reduction, Citi continues to recommend a Buy rating on 2Seventy Bio’s stock, albeit with a designation of High Risk, indicating the potential volatility and uncertainty associated with the investment.

In other recent news, 2seventy bio, in collaboration with Bristol Myers Squibb, reported full-year sales results for Abecma in 2024, with U.S. revenue reaching $242 million. This aligns with the company’s prior guidance of $240 to $250 million. On the personnel front, 2seventy bio has appointed Jessica Snow as its new Chief Operating Officer, a decision made by the company’s Board of Directors to optimize its leadership structure.

In a recent earnings call, the company reported a 42% increase in U.S. revenues for Abecma, reaching $77 million in the third quarter of 2024. This surge is attributed to the expansion in the third-line treatment setting and FDA approval. The company also announced a significant reduction in operating expenses and a streamlined focus on Abecma, following the sale of other R&D pipelines.

The company’s financial position at the end of 2024 included approximately $184 million in cash, cash equivalents, and marketable securities. The fourth quarter saw a shift in some revenue into 2025 due to deferrals of infusions. These are the latest developments in the company’s journey towards potentially reaching quarterly breakeven by the end of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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