Generation Bio downgraded to Hold from Buy at Jefferies

Jefferies downgraded Generation Bio (GBIO) to Hold from Buy with a price target of $5, down from $11, citing the pending takeover by Xoma (XOMA). Although the $4.29 per share offer was below Generation pre-deal price, the contingent value right provides an additional potential payout that could bridge the valuation gap, the analyst tells investors in a research note.