SVB Leerink Says 'We Were Wrong,' Slashes Bluebird Bio Price Target

by Vandana Singh, Benzinga Editor

August 9, 2021 1:41 PM | 1 min read | Make a Comment

After the FDA placed a clinical hold on Bluebird Bio Inc's BLUE cerebral adrenoleukodystrophy gene therapy, SVB Leerink downgraded the stock to Market Perform from Outperform.
Analyst Mani Foroohar also slashed the price target to $20, down from $64.
In a note partially titled "We Were Wrong," Foroohar says the specifics of the safety event may not have read across to LentiGlobin in sickle cell disease and beta-thalassemia, "it does reflect an ongoing overhang of future headline risk."
At the same time, the company's decision to close EU commercial operations and focus on the U.S. market raises questions on commercial execution, Foroohar tells investors.
Price Action: BLUE shares are down 25.1% at $18.76 during the market session on the last check Monday.