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Do Analysts See Any Upside for bluebird bio Stock?

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BLUE’s bottom line

In this year’s third quarter, bluebird bio (BLUE) generated net interest income of $4.59 million compared to its net interest expense of $1.15 million in the previous year’s period. Its net other expense was $252,000 compared to its net other income of $8,000 in the previous year’s period.

The company’s net income fell YoY (year-over-year) to -$145.48 million from -$78.8 million, translating to a net income per share of -$2.73. bluebird had a net income per share of -$1.73 in the third quarter of 2017. The number of bluebird’s outstanding shares has increased YoY to ~53.28 million from ~45.65 million.

bluebird’s net incomes are expected to be -$562.39 million and -$621.55 million, respectively, in 2018 and 2019 compared to $335.64 million in 2017.

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Analysts’ recommendations

Of the 23 analysts covering bluebird bio stock, 16 have given it “buy” or higher ratings, and seven have given it “holds.” Analysts’ mean rating for bluebird stock is 1.96, and their target price is $184.94, implying a potential 79.9% upside for the stock based on its December 18 price of $102.79.

Peers’ ratings

In comparison, peers Amgen (AMGN), Sarepta Therapeutics (SRPT) and Vertex Pharmaceuticals (VRTX) have received mean ratings of 2.33, 1.65, and 1.84, respectively, and target prices of $204.8, $195.43, and $201.82, respectively.

bluebird’s current ratio, which shows how effectively it can meet its short-term obligations, is 13.10x. In comparison, Amgen’s, Sarepta’s, and Vertex’s current ratios are 3.10x, 8.80x, and 3.70x, respectively.

Stock performance

After falling from $233.05 on March 12 to $104.65 on October 29, bluebird stock recovered to $134.91 on November 5. Since then, selling pressure amid broader market fluctuations has taken it back down to the $102.2 level in December.

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