An analyst’s cut can be an unkind one for stocks, but for healthcare stock Bristol-Myers Squibb (NYSE:BMY), it wasn’t nearly as bad as it might have been. In fact, the healthcare giant’s shares turned up fractionally Monday afternoon despite some deep-seated concerns.
The latest word from Societe Generale saw Bristol-Myers Squibb stock cut to Hold, suggesting that there just weren’t enough tricks up its sleeve to give it a chance. Societe Generale analysts noted that there was a path to victory here, but not a likely one. They looked for Bristol-Myers Squibb to rise if “the new CEO can transform BMS into a sustainable premium growth story.”
However, that wasn’t likely, as Bristol-Myers Squibb was staring down a slate of challenges, including “…top-line challenge(s)” and “…the length of the pharma product cycle….” Throw in some recent political issues that might impact drug pricing in the weeks ahead, and that might add up to trouble.
Not All That Dire
This news, oddly, comes about three days after Bristol-Myers Squibb landed new Food & Drug Administration (FDA) approval for its Opdivo drug to be used alongside chemotherapies cisplatin and gemcitabine in treating bladder cancer. That’s a major new advance and should give Bristol-Myers Squibb a real leg up going forward.
However, Societe Generale does have a point; a lot of Bristol-Myers Squibb drugs will be coming off patent soon. That’s going to significantly impact its lineup and require more rapid development of replacements in short order.
What Is the Target Price for BMY?
Turning to Wall Street, analysts have a Hold consensus rating on BMY stock based on four Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 14.72% loss in its share price over the past year, the average BMY price target of $55.40 per share implies 2.2% upside potential.
