In a report released on February 2, Evan Seigerman from BMO Capital assigned a Hold rating on Bristol-Myers Squibb (BMY – Research Report), with a price target of $55.00.
Geoff Meacham has given his Hold rating due to a combination of factors that indicate Bristol-Myers Squibb is currently fairly valued. The company’s financial performance in the fourth quarter of 2023 surpassed expectations in terms of revenue and earnings per share, thanks to higher sales of new products such as Reblozyl and Camzyos, as well as stronger than anticipated results from their base business including Revlimid. Despite this, there was a varied performance from other growth products and challenges in the cell therapy segment. The projected revenue growth for FY2024 is positive, albeit modest, and gross margins are expected to decrease slightly due to product mix changes.
Furthermore, Bristol-Myers Squibb’s management is seen as effectively navigating the company through a strategic pivot, with launched products gaining traction and significant mergers and acquisitions in 2023 poised to potentially enhance future performance. However, these positives are tempered by investors’ close monitoring of commercial execution and the management’s ability to realign the business. The 2024 guidance is somewhat stronger than consensus, with expected earnings per share slightly ahead. Nonetheless, the Hold rating implies that the current stock price reflects the company’s prospects and performance, with no immediate catalysts for a significant re-rating.
According to TipRanks, Seigerman is a 4-star analyst with an average return of 8.0% and a 50.85% success rate. Seigerman covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Bristol-Myers Squibb, and Neurocrine.
In another report released yesterday, Barclays also reiterated a Hold rating on the stock with a $51.00 price target.
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Bristol-Myers Squibb (BMY) Company Description:
Founded in 1933, New York-based Bristol-Myers Squibb Co. is a global pharmaceutical company, which engages in the development, licensing, manufacturing, distribution, and sale of biopharmaceutical products in several therapeutic areas. These include cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.
Read More on BMY:
- Bristol-Myers Squibb Q4 and Full Year Financial Update
- Senate Health, Education, Labor & Pensions Committee holds a hearing
- Bristol-Myers (NYSE:BMY) Rises on Q4 Beat
- Options Volatility and Implied Earnings Moves Today, February 02, 2024
- Bristol Myers sees FY24 adjusted EPS $7.10-$7.40, consensus $7.00
