UPDATE: JPMorgan Downgrades Global Blood Therapeutics (GBT) to Neutral

JPMorgan analyst Tessa Romero downgraded Global Blood Therapeutics (NASDAQ: GBT) from Overweight to Neutral with a price target of $36.00 (from $70.00).

The analyst comments "We rate GBT shares Neutral. Global Blood Therapeutics (GBT) is a commercial-stage biotechnology company with a focus on developing therapeutics for the treatment of blood-based
disorders. Overall, we believe our recent 2021 U.S. physician survey results in sickle cell disease (SCD) confirm a long-term market opportunity for Oxbryta that is meaningful (JPMe peak sales ~$700M in U.S.; ~$250M in E.U.) based on physician feedback that supports the drug’s overall utility in certain patients, in particular anemic patients on current standard of care. That said, feedback was more mixed on balance on the overall profile/clinical experience with the drug, which we believe could translate into more gradual growth over time. Even though sellside estimates (FY21-FY28; Bloomberg) have also come down ~20-35% vs prior 12 months, based on our survey work, we believe estimates in FY22+ may still need to adjust further downward. At the same time, with GBT shares down ~44% in the last 12 months (vs NBI +21%) and a somewhat favorable set-up into 2Q, we see a fairly balanced risk/reward for the stock."

For an analyst ratings summary and ratings history on Global Blood Therapeutics click here. For more ratings news on Global Blood Therapeutics click here.

Shares of Global Blood Therapeutics closed at $36.44 yesterday.

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