Jefferies starts ‘optically cheap’ Bristol-Myers at Hold on structural concerns

As previously reported, Jefferies analyst Akash Tewari initiated coverage of Bristol-Myers with a Hold rating and $62 price target. While acknowledging the stock "screens cheap" when compared to pharma peers, the firm would argue the valuation is fair given what it sees as significant loss of exclusivity risk, a "mixed view" on its pipeline and expectations for declining operating profit margins. However, the analyst adds that Bristol has capacity for M&A as well as "under the radar catalysts" that could surprise to the upside.