On Wednesday, Truist Securities updated their financial model for Bristol-Myers Squibb Co. (NYSE:BMY), resulting in a raised price target from $62.00 to $65.00 while sustaining a Buy rating on the stock. The company, currently trading at $56.71 and showing impressive momentum with a 46% gain over the past six months, has caught analysts' attention.
This adjustment reflects the firm's confidence in the company's ability to capitalize on recent and upcoming product launches that are expected to fuel growth into the latter part of the decade. According to InvestingPro analysis, BMY currently appears slightly undervalued, with analysts' targets ranging from $39 to $73.
Truist Securities highlighted the robust sales performance of several of Bristol-Myers Squibb's products, such as Reblozyl, Breyanzi, and Opdualag. The firm anticipates that the momentum seen in these products will persist into 2025. The firm also noted that the current market price does not fully appreciate the potential of indication expansions for what they consider could be multiple mega-blockbusters in the company’s portfolio.
The positive outlook is further supported by the expectation of favorable outcomes from various catalysts over the next 12 to 18 months. These outcomes are believed to be instrumental in driving more investors to recognize the value of Bristol-Myers Squibb's diverse asset portfolio.
In their revised financial model, Truist Securities has made updates to account for the 2025 quarter split, adjustments to new product launch ramps, and considerations for loss of exclusivity (LOE) on key products, as well as for the fourth quarter of 2024 in-process research and development (IPR&D).
The firm now projects revenues of $47.4 billion for 2024, $45.7 billion for 2025, and $42.8 billion for 2026. These figures have been adjusted down from their previous estimates of $47.55 billion, $45.99 billion, and $43.44 billion, respectively.
The updated model also includes revised expectations for adjusted diluted earnings per share (EPS), forecasting $0.93 for 2024, $6.54 for 2025, and $5.74 for 2026. These figures represent a decrease from the earlier projections of $1.03, $6.97, and $6.12 for the corresponding years. The adjustments reflect a comprehensive analysis of the company's financial outlook based on current and anticipated market conditions.
For deeper insights into BMY's valuation and growth prospects, InvestingPro subscribers can access the detailed Pro Research Report, which provides comprehensive analysis of the company's financial health, currently rated as "GOOD" with a score of 2.78 out of 5.
In other recent news, Bristol Myers Squibb announced successful outcomes from its Phase 3 trials of Sotyktu in treating active psoriatic arthritis. The company also received approval from the European Commission for the use of Opdivo and Yervoy as a first-line treatment for certain types of colorectal cancer.
Meanwhile, JPMorgan maintained its Overweight rating on Bristol-Myers Squibb, highlighting the company's promising developments, particularly the launch of Cobenfy for schizophrenia treatment.
In investment firm news, Piper Sandler released a report detailing their top biotechnology picks for 2025 within the Central Nervous System (CNS) vertical, with Neurocrine (NASDAQ:NBIX) and Intra-Cellular named as the highest-conviction CNS ideas. TD Cowen raised concerns about the global pharmaceutical industry's future due to the impact of U.S. tariffs and geopolitical tensions, but noted that large-cap pharmaceutical companies are seen as well-positioned to mitigate these risks.
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