On Monday, TD Cowen adjusted its outlook on shares of Bristol-Myers Squibb Co. (NYSE:BMY), increasing the price target to $59 from the previous $53 while retaining a Hold rating on the stock. The adjustment reflects the firm's recognition of Bristol-Myers Squibb's recent performance and future potential despite some challenges.
The firm acknowledges Bristol-Myers Squibb's growth in key products, citing Eliquis and Opdivo as examples of successful products contributing to the company's current strength in the market. Bristol-Myers Squibb's position in hematology is also highlighted as a significant factor, along with the initiation of multiple new product launches, with Cobenfy being particularly notable.
Despite these positive developments, the firm remains cautious about the company's long-term growth, pointing to upcoming loss of exclusivity (LOEs) for some of its products. These LOEs are expected to affect the company's sales and earnings per share (EPS), potentially resulting in below-average figures through to the year 2030.
The revised price target of $59 is based on an 8X multiple of the company's estimated 2025 earnings per share (EPS). The firm's decision to maintain a Hold rating indicates a neutral stance, suggesting that while the company has made positive strides, there are still enough uncertainties to prevent a more bullish recommendation.
In other recent news, Bristol Myers Squibb has successfully obtained the dismissal of a $6.4 billion lawsuit related to the delayed approval of the cancer drug Breyanzi and two other drugs developed by Celgene (NASDAQ:CELG).
Moreover, the company has reported positive outcomes from the Phase 3b/4 PSORIATYK SCALP trial of Sotyktu for patients with moderate-to-severe scalp psoriasis. Bristol Myers Squibb has also received FDA approval for its schizophrenia treatment, COBENFY™, a significant development noted by analysts from Morgan Stanley, JPMorgan, BMO Capital, and Goldman Sachs.
Zai Lab (NASDAQ:ZLAB), the company that previously secured the Greater China rights to COBENFY™, is also expected to benefit from the FDA approval, with Morgan Stanley maintaining a positive outlook on Zai Lab shares. In other developments, Bristol Myers Squibb's blood thinner Eliquis has been selected by the Biden administration for price negotiations with the Medicare health program.
These are the latest developments in Bristol Myers Squibb's ongoing activities in the pharmaceutical industry, highlighting their strides in drug development and legal matters.
InvestingPro Insights
To complement TD Cowen's analysis of Bristol-Myers Squibb (NYSE:BMY), recent data from InvestingPro offers additional perspective on the company's financial health and market performance. BMY's market capitalization stands at $109.32 billion, reflecting its significant presence in the pharmaceutical industry. The company's revenue for the last twelve months as of Q2 2024 was $46.51 billion, with a modest growth of 2.93% over the same period.
InvestingPro Tips highlight BMY's strong dividend profile, noting that the company has maintained dividend payments for 54 consecutive years and has raised its dividend for 3 consecutive years. This consistency in dividend payments aligns with the company's current dividend yield of 4.45%, which may be attractive to income-focused investors.
The stock's recent performance has been particularly strong, with a 37.58% price total return over the past three months. This surge has brought BMY's price to 93.39% of its 52-week high, suggesting renewed investor confidence that may be linked to the product launches and growth in key products mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for BMY, providing a deeper dive into the company's financial health and market position. These insights can be particularly valuable given the mixed outlook presented by TD Cowen, balancing the company's current strengths against potential future challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.