Bristol-Myers Squibb (BMY) has received a new Hold rating, initiated by Goldman Sachs analyst, Chris Shibutani.
Chris Shibutani has given his Hold rating due to a combination of factors influencing Bristol-Myers Squibb’s current market position. The company faces significant challenges with expected revenue declines due to upcoming patent expirations, which are well recognized in its current valuation. Despite strategic efforts by management to navigate these challenges through cost-cutting and investments in new growth areas, the path to returning to growth remains uncertain and is expected to take several years.
In the short term, attention is focused on the Phase 3 ARISE trial results for Cobenfy, which could impact the drug’s market potential. While the initial launch of Cobenfy has been promising, the trial’s outcome will be crucial in shaping future sentiment. Other drugs in the company’s portfolio, such as Camzyos, Reblozyl, Opdualag, and Breyanzi, are expected to continue driving growth, aligning with market expectations. Overall, the current stock price reflects these various factors, leading to a balanced risk/reward scenario at present levels.
Shibutani covers the Healthcare sector, focusing on stocks such as BioNTech SE, Bristol-Myers Squibb, and AbbVie. According to TipRanks, Shibutani has an average return of 9.3% and a 42.73% success rate on recommended stocks.
In another report released on April 4, BMO Capital also reiterated a Hold rating on the stock with a $61.00 price target.