In a report released today, Tim Anderson from Bank of America Securities reiterated a Hold rating on Bristol-Myers Squibb (BMY – Research Report), with a price target of $56.00.
Tim Anderson has given his Hold rating due to a combination of factors impacting Bristol-Myers Squibb’s performance. The company’s first-quarter results exceeded expectations in terms of revenue and earnings per share, primarily driven by established brands. However, the newer brands did not perform as well, and despite the positive financial results, the stock price remained flat, underperforming compared to its peers in the large-cap biopharma sector.
Additionally, while the company has raised its revenue and EPS guidance for the fiscal year 2025, the long-term growth outlook remains challenging due to anticipated earnings declines from generic competition. Although Bristol-Myers Squibb is relatively inexpensive compared to its peers, it no longer stands out as a valuation outlier. These factors contribute to the Hold rating, as the stock’s intermediate-term growth prospects are uncertain despite its current favorable valuation.
Based on the recent corporate insider activity of 36 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.