Evan Seigerman, an analyst from BMO Capital, maintained the Hold rating on Bristol-Myers Squibb. The associated price target remains the same with $47.00.
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Evan Seigerman’s rating is based on a combination of factors including the recent performance of Bristol-Myers Squibb’s new drug, Cobenfy, in the market. The weekly total prescriptions (TRx) for Cobenfy have shown a decline, with a 4.7% decrease week-over-week, which has led to a reduction in confidence that the drug will meet the third-quarter revenue estimates. This slowdown in prescription growth has prompted a downward revision in consensus estimates, suggesting that the drug’s performance may fall short of market expectations.
Furthermore, after analyzing the second-quarter earnings, Seigerman has updated the revenue model assumptions, forecasting that Cobenfy’s third-quarter revenue will likely miss the Visible Alpha consensus estimate. The anticipated revenue is projected to be $45.8 million, which is 6% below the consensus. Despite the stable cash flows from the company’s immuno-oncology and hematology businesses, the uncertainty surrounding the new product launches and their ability to meet financial targets has led to a Hold rating, indicating that the stock is fairly valued at its current price.