In a report released yesterday, Terence Flynn from Morgan Stanley maintained a Sell rating on Bristol-Myers Squibb, with a price target of $34.00.
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Terence Flynn’s rating is based on several factors surrounding Bristol-Myers Squibb’s current market position and future prospects. A significant point of concern is the company’s reliance on Cobenfy, a drug recently approved for schizophrenia, which is now being tested for Alzheimer’s Disease Psychosis (ADP). While the potential market for ADP is substantial, with no approved therapies currently available, the success of Cobenfy in this area is uncertain and hinges on the outcomes of ongoing Phase 3 trials.
Moreover, the initial uptake of Cobenfy for schizophrenia has been slower than anticipated, which could affect investor confidence in the drug’s potential to drive future revenue. Flynn notes that even if the upcoming trial results are positive, the stock’s performance will depend on how quickly Cobenfy prescriptions increase. Conversely, a failure in the ADP trials could result in a significant drop in Bristol-Myers Squibb’s stock value, as seen in previous trial setbacks. These uncertainties contribute to Flynn’s Sell rating for the stock.
Flynn covers the Healthcare sector, focusing on stocks such as BioNTech SE, Gilead Sciences, and Merck & Company. According to TipRanks, Flynn has an average return of 2.7% and a 53.87% success rate on recommended stocks.