Barclays downgrades Bristol Myers to Underweight after 25% share rally

Barclays downgraded Bristol Myers to Underweight from Equal Weight with an unchanged price target of $41. The stock has rallied 25% over the past 11 days supported by multiple drivers, including a macro rotation lifting lower-multiple pharma names, a host of positive pharma prints, Bristol’s own Q2 beat and raise, and “favorable” Inflation Reduction Act Eliquis price messaging, the analyst tells investors in a research note. However, Barclays says the company didn’t address investors’ key focus, which is longer-term trough guidance. The Q2 beat “was at best mixed, if not low-quality,” driven by legacy products and stocking dynamics, contends the firm. It adds that Bristol shares had their best day in two decades while persistent broader challenge are still the same – eroding sales and earnings post-2026 with a lack of visibility on when and where that trend will stop. The stock rallied 25% despite little movement in underlying post-2025 fundamentals, Barclays says.