The average target price of TSVT is 5.0 and suggests 0% downside 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 is lower than the current market price, meaning that even the most optimistic analyst does not see upside potential. On the other hand, the most pessimistic analyst has a target price of 5.0. This is equivalent to 0% downside potential in the worst case. 

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 38mn in the last 12 months, down 62% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 75% from FY23 to USD -1.09. Market expects EPS to reach USD -0.84 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 14ppts over past six months and grown 6ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -258.9% in the last 12 months, a decline from -205.6% in FY23. 

Historically, TSVT has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -151.2%, a growth from -212.2% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -12.1%, below the peers. The consensus estimate for FY24 for RoCE is -8.2%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to -11.0% in the last 12 months, an increase from -34.9% in FY23. The market analysts predict that RoA will be -7.3% in FY24, again weaker than its peers. 

2seventy bio, Inc. reported a return on equity (RoE) of -24.6% in the last 12 months, up from -75.3% in FY23. The market consensus projects an RoE of -16.1% in FY24, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -3.9 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, poor cash flow generation, and an unfavourable capital structure. 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. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. 

2seventy bio, Inc.

$ 5

2

2seventy bio, Inc.

$ 5

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 5

About

About

2seventy bio, Inc.

$ 5

2

2seventy bio, Inc.

$ 5

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 5

About

About

News and articles