#5 - Bristol-Myers Squibb (NYSE:BMY)
Bristol-Myers Squibb (NYSE: BMY) presents investors with an interesting case. The stock has a consensus Hold rating but a price target of $61.18, which would give the stock a 25% upside. BMY stock is down 30.5% in the last twelve months and 4.5% in 2024.
The issue is two-fold. First, analysts are concerned about generic competition (i.e., the patent cliff) for several of the company’s flagship drugs, such as Reylimid, Eliquis, and Opdivo. Reylimid is currently seeing revenue loss with Eliquis and Opdivo due to patent expiration in 2026 and 2028, respectively.
Bristol-Myers has also pursued a growth-through-acquisition strategy to beef up its pipeline. The plan is to get new drugs into market before the others reach the patent cliff. However, the company has taken on debt to accomplish that.
What investors are left with is a stock that is trading for around 7x forward earnings, is expected to grow earnings by about 6.6% in the next 12 months and one that pays a dividend with a 4.92% yield.
About Bristol-Myers Squibb
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia.
Read More - Current Price
- $58.60
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 14 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $54.07 (7.7% Downside)
