BMO maintains Bristol-Myers Squibb stock at Market Perform

On Friday, BMO Capital Markets maintained their Market Perform stance on Bristol-Myers Squibb Co. (NYSE:BMY), with a steady price target of $61.00. The firm’s analyst highlighted the year 2025 as a pivotal period for the pharmaceutical company, noting the potential for significant developments with its late-stage pipeline. The company, currently valued at $117 billion, has demonstrated stability with a beta of 0.44 and maintains a strong dividend yield of 4.3%. According to InvestingPro analysis, Bristol-Myers Squibb appears undervalued based on its Fair Value calculations.

Bristol-Myers Squibb is anticipated to reach several key milestones in the upcoming months, including results from the ARISE study in adjunctive schizophrenia in the second quarter of 2025, findings from Odyssey-HCM in non-obstructive hypertrophic cardiomyopathy (nHCM) also in the second quarter, and outcomes from the ADEPT-2 trial in Alzheimer’s psychosis in the second half of the year.

The analyst expressed a cautious optimism about the company’s prospects, acknowledging the transformative potential of these catalysts for Bristol-Myers Squibb’s stock. However, the analyst also conveyed the need for greater clarity on how Bristol-Myers Squibb’s current late-stage pipeline will contribute to sustained growth, especially in light of looming patent expirations for some of its key products.

Bristol-Myers Squibb is navigating the impending loss of exclusivity (LOE) for several of its major drugs. The patent for Revlimid is nearly expired, with Eliquis and Opdivo to follow, which puts pressure on the company to innovate and find new sources of revenue.

The analyst’s remarks suggest a watchful approach to Bristol-Myers Squibb’s stock, waiting for further evidence that the company’s pipeline can effectively offset the challenges presented by the expiration of patents for its blockbuster drugs. The year 2025 is thus shaping up to be a decisive time for the company, with significant implications for its financial performance and stock valuation.

In other recent news, Bristol-Myers Squibb reported that a key European regulatory committee has endorsed a subcutaneous formulation of its cancer drug, Opdivo. The European Commission is expected to review this recommendation, with a decision anticipated by June 2. Additionally, the company received expanded approval from the European Commission for its CAR-T cell therapy, Breyanzi, to treat adults with relapsed or refractory follicular lymphoma. This approval is based on the high response rates demonstrated in the Phase 2 TRANSCEND FL study.

In analyst updates, BMO Capital Markets maintained a Market Perform rating with a $61 price target for Bristol-Myers Squibb, highlighting the performance of the schizophrenia drug Cobenfy, which saw a 7.4% increase in total prescriptions. UBS analysts also retained a Neutral rating with a $60 target, noting that Cobenfy’s launch has been more successful than similar drugs, despite a recent leveling off in prescriptions. UBS projects Cobenfy could achieve approximately 15,000 prescriptions in the first quarter of 2025. Both analyst firms provided insights into Cobenfy’s revenue potential, with BMO estimating $22 million and UBS estimating between $18 million to $21 million for the first quarter of 2025.

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