Hold Rating on Bristol-Myers Squibb Amid R&D and Acquisition Strategy Concerns

Analyst Tim Anderson of Bank of America Securities maintained a Hold rating on Bristol-Myers Squibb (BMY – Research Report), retaining the price target of $56.00.

Tim Anderson’s rating is based on a comprehensive evaluation of Bristol-Myers Squibb’s current research and development strategies and their potential impact on future growth. The company’s R&D spending and strategic focus on core areas such as oncology, cardiovascular, immunology, and neuroscience were key considerations. Anderson raised questions about whether the existing R&D investments are adequate to drive growth by the end of the decade.
Additionally, the company’s approach to mergers and acquisitions, particularly the 2019 acquisition of Celgene, was scrutinized to assess its effectiveness in enhancing R&D capabilities. The discussion also touched on specific pipeline products and their commercial prospects, including recent launches and upcoming data readouts. Despite these efforts, uncertainties around the success of certain trials and the competitive landscape in key therapeutic areas contribute to the Hold rating.

In another report released yesterday, Citi also reiterated a Hold rating on the stock with a $51.00 price target.

Based on the recent corporate insider activity of 38 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.