Analyst Mohit Bansal of Wells Fargo maintained a Hold rating on Bristol-Myers Squibb (BMY – Research Report), retaining the price target of $52.00.
Mohit Bansal’s rating is based on a mix of strengths and concerns surrounding Bristol-Myers Squibb’s recent performance. The company’s earnings surpassed expectations, yet this was primarily due to the strength of Revlimid sales, rather than a robust showing across its portfolio. Concerns are particularly focused on the underperformance of newer growth products and the impact this may have on future revenue streams. Furthermore, the revised earnings per share (EPS) guidance appears to inadequately account for significant cost-saving initiatives, which could be necessary to mitigate the financial impacts of recent acquisitions.
Moreover, Bansal highlights that while there was a positive surprise with Reblozyl and continued success with Eliquis, these were not enough to alleviate the negative impact of weaker cell therapy sales and the misses of Camzyos and Sotyktu. Additionally, the hold rating reflects uncertainties about the commercial potential of the company’s pipeline, including the launch of KarXT. The muted topline guidance growth also suggests that Bristol-Myers Squibb has conservative expectations for its near-term performance, further justifying the Hold rating.
Bansal covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Bristol-Myers Squibb, and Amgen. According to TipRanks, Bansal has an average return of 6.5% and a 55.12% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $43.00 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.
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