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Bristol-Myers Squibb: Hold Rating Amid Slower Growth and Stable Valuation

Bristol-Myers Squibb: Hold Rating Amid Slower Growth and Stable Valuation

Analyst Evan Seigerman from BMO Capital maintained a Hold rating on Bristol-Myers Squibb (BMYResearch Report) and keeping the price target at $53.00.

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Evan Seigerman has given his Hold rating due to a combination of factors related to Bristol-Myers Squibb’s current market performance and future projections. The company’s new product, Cobenfy, is experiencing slower than expected growth in prescriptions, which is impacting revenue forecasts. Despite a decline in weekly sales due to a holiday week, the normalized data suggests potential growth, yet still falls short of consensus estimates.
Additionally, the company’s stable cash flows from its immuno-oncology and hematology businesses contribute to the perception that the stock is fairly valued at present. The anticipated adjustments in gross-to-net discounts and potential inventory fluctuations introduce further variability, leading to a cautious outlook. These elements combined suggest that while the company is stable, there is insufficient momentum to justify a more aggressive rating at this time.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BMY in relation to earlier this year.

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