The average target price of TSVT is 5.0 and suggests 1% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 5.0. This translates into 1% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 5.0. This suggests 1% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

2seventy bio, Inc., a cell and gene therapy company, focuses on the research, development, and commercialization of treatments for cancer in the United States. Its products pipeline includes idecabtagene vicleucel; ide-cel or Abecma and bb21217; and CAR-T cell product candidates for the treatment of multiple myeloma. 2seventy bio, Inc. has a collaboration arrangement with Bristol-Myers Squibb Company. The company was incorporated in 2021 and is headquartered in Cambridge, Massachusetts.

2seventy bio, Inc.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

TSVT reported revenue of USD 46mn in the last 12 months, down 55% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 58% from FY23 to USD -1.83. Market expects EPS to reach USD -4.36 in FY24.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 10ppts and its growth accelerated by 97ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -292.5% in the last 12 months, a decline from -274.7% in FY22. 

Historically, TSVT has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -207.3%, a growth from -272.1% in FY22. 

2seventy bio, Inc. reported a return on equity (RoE) of -35.1% in the last 12 months, up from -74.3% in FY22. The market consensus projects an RoE of -44.9% in FY23, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to -18.2%, below the peers. The consensus estimate for FY23 for RoCE is -25.5%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to -16.3% in the last 12 months, an increase from -35.2% in FY22. The market analysts predict that RoA will be -21.2% in FY23, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -4.0 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

TSVT has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity may be unstable and remains extremely favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to slow historical revenue growth, bleak profitability, negligible return on capital, inadequate interest coverage, and poor cash flow generation. We note low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, TSVT is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, TSVT is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. 

2seventy bio, Inc.

$ 4.96

2

2seventy bio, Inc.

$ 4.96

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 4.96

About

About

2seventy bio, Inc.

$ 4.96

2

2seventy bio, Inc.

$ 4.96

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 4.96

About

About

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