UPDATE: Bank of America Initiates bluebird bio at Buy on Transformational Potential

In a report published Monday, Bank of America analyst Rachel McMinn initiated coverage on bluebird bio BLUE with a Buy rating and $42.00 price target.

In the report, Bank of America noted, “We are initiating on bluebird bio (BLUE) with a $42 PO and Buy rating. BLUE is a biotechnology company focused on developing groundbreaking gene therapy medicines for life threatening diseases caused by a single genetic defect. If the company's technology is successfully developed, BLUE could revolutionize the treatment of many rare disorders starting in the 2018+ timeframe. Our $42 PO represents the high end of valuation for peer biotech platform companies, driven by our optimistic outlook on the company's ability to execute its business plan.”

bluebird bio closed on Friday at $30.65.