Jefferies lowers Generation Bio stock price target to $12 from $40

Investing.com - Jefferies has reduced its price target on Generation Bio (NASDAQ:GBIO) to $12.00 from $40.00 while maintaining a Buy rating on the stock. The company’s shares, currently trading at $4.05 with a market cap of $27.15 million, have declined 84% over the past year. According to InvestingPro analysis, the stock appears undervalued at current levels.

The price target adjustment follows Generation Bio’s announcement that it is evaluating strategic alternatives for its pipeline, which includes a siRNA platform targeting T cells with selective delivery, an in vivo HSC program, and novel immune-quiet DNA technology.

Jefferies noted that all of Generation Bio’s programs remain in early development stages and will require substantial capital investment to reach clinical proof-of-concept patient data.

The firm highlighted that Generation Bio expects to have $100 million in cash following its restructuring efforts, which translates to approximately $12 per share on a fully diluted basis.

The previous $40 price target had incorporated a reverse stock split, according to Jefferies’ research note on the biotechnology company.

In other recent news, Generation Bio Co . has announced a significant workforce reduction as part of a strategic review. The company plans to cut approximately 90% of its workforce by the end of October 2025. Generation Bio has engaged TD Cowen to explore strategic alternatives, which may include a potential acquisition, merger, business combination, or sale of assets. Additionally, the company will implement a 1-for-10 reverse stock split, effective July 21, 2025. This move, approved by stockholders, will reduce the number of outstanding shares from approximately 67.3 million to 6.7 million, while maintaining the same number of authorized shares and par value. These developments highlight Generation Bio’s efforts to restructure and possibly reposition itself in the market.

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