Generation Bio stock price target raised to $10 from $9 at Canaccord

Published 18/08/2025, 12:32
Generation Bio stock price target raised to $10 from $9 at Canaccord

Investing.com - Canaccord Genuity raised its price target on Generation Bio (NASDAQ:GBIO) to $10.00 from $9.00 on Monday, while maintaining a Buy rating on the stock. The company, currently valued at $42.37 million, has seen its shares surge 55.69% in the past week, though they remain 74.84% lower year-over-year. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

The price target increase follows Generation Bio’s second-quarter update, which included two significant announcements. The company reported new non-human primate data demonstrating siRNA delivery to T cells via its proprietary ctLNP platform, which Canaccord described as likely the first dataset of its kind.

Generation Bio also revealed it has developed siRNA candidates targeting LAT1 and VAV1, known targets in the autoimmune space. Despite these advancements, the company announced a 90% workforce reduction to preserve cash while it explores strategic alternatives.

Canaccord’s updated price target of $10 is now driven solely by the company’s cash position, which Generation Bio expects to last into the "foreseeable future" following the workforce reduction and recent reverse split.

The research firm maintained its Buy rating, citing the "solid cash position" and "highly differentiated LNP platform," while acknowledging that uncertainties around strategic alternatives make the stock "a less compelling story for the time being."

In other recent news, Generation Bio Co . has announced a significant restructuring plan, which includes a 90% reduction in its workforce, expected to be completed by the end of October 2025. This move comes as the company evaluates strategic alternatives, retaining TD Cowen to explore options such as acquisitions, mergers, or asset sales. Alongside these developments, Generation Bio plans to implement a 1-for-10 reverse stock split, effective July 21, 2025, which will reduce the number of outstanding shares significantly.

In response to these changes, Wedbush downgraded Generation Bio’s stock rating from Outperform to Neutral, maintaining a price target of $7.00. Jefferies also adjusted its price target for the company, lowering it from $40.00 to $12.00, while maintaining a Buy rating. Meanwhile, JMP Securities reiterated its Market Perform rating, noting the company’s potential in siRNA CAR-T capabilities and selective multi-tissue delivery technologies. These recent developments highlight the company’s ongoing efforts to restructure and explore new strategic directions.

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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