Wells Fargo analyst Mohit Bansal maintained a Hold rating on Bristol-Myers Squibb (BMY – Research Report) yesterday and set a price target of $62.00.
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Mohit Bansal’s rating is based on several factors concerning Bristol-Myers Squibb’s financial and strategic position. The company has announced a significant $2 billion restructuring plan aimed at reducing operational expenses, which is seen as a positive move to position the company for long-term success. Despite the missed guidance, the growth portfolio expectations remain aligned, and the operational expense reductions are expected to offset some of the financial challenges.
However, concerns remain regarding the projected $8 billion revenue decline from 2025 to 2029, even with the potential contributions from new products like Cobenfy. The anticipated revenue from these growth products is not sufficient to completely counterbalance the expected downturn. Additionally, while there are some promising developments, such as the potential expansion of Camzyos’ market, the company may need another successful asset or pipeline development to fully address the anticipated shortfall. These mixed factors contribute to the Hold rating, reflecting a cautious outlook on the company’s future performance.
In another report released on February 4, Bank of America Securities also reiterated a Hold rating on the stock with a $63.00 price target.