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Cautious Hold Rating on Bristol-Myers Squibb Amid Stable Cash Flows and Slower Product Launches

BMO Capital analyst Evan Seigerman maintained a Hold rating on Bristol-Myers Squibb (BMYResearch Report) on May 9 and set a price target of $53.00.

Protect Your Portfolio Against Market Uncertainty

Evan Seigerman’s rating is based on a combination of factors that suggest Bristol-Myers Squibb’s stock is fairly valued at present. The company’s I/O and hematology divisions are generating consistent cash flows, which provides a stable financial foundation. However, the new product launches, including Cobenfy, are progressing at a slower pace than anticipated, which tempers expectations for rapid growth.
Despite the slight increase in Cobenfy prescriptions, there are concerns about potential inventory build and adjustments in gross to net calculations that could introduce variability in revenue estimates. These factors contribute to a cautious outlook, resulting in a Hold rating as the stock is not expected to outperform the market significantly in the near term.

Seigerman covers the Healthcare sector, focusing on stocks such as Bristol-Myers Squibb, Novo Nordisk, and Vertex Pharmaceuticals. According to TipRanks, Seigerman has an average return of 2.8% and a 42.62% success rate on recommended stocks.

In another report released on May 9, Citi also maintained a Hold rating on the stock with a $51.00 price target.

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