Bristol-Myers Squibb stock holds steady as UBS maintains Neutral rating

Investing.com - UBS has reiterated its Neutral rating and $52.00 price target on Bristol-Myers Squibb Co. (NYSE:BMY), a prominent player in the pharmaceuticals industry with a market cap of $96.4 billion, ahead of its second-quarter earnings report. According to InvestingPro analysis, the stock appears undervalued at current levels, with strong financial health metrics supporting potential upside.

The firm expects no major surprises for the quarter, noting that while Part D redesign will likely impact higher-priced drugs like Revlimid, Pomalyst, Orencia, and Camzyos as they enter catastrophic coverage earlier, these headwinds appear to be reflected in current consensus estimates. The company maintains strong fundamentals with a healthy gross profit margin of 75% and an impressive EBITDA of $19.2 billion over the last twelve months.

UBS projects second-quarter sales of $3.5 billion for Eliquis, representing 8% TRx growth, after adjusting for a $160 million gross-to-net benefit observed in the first quarter, which should partially offset other pressures on the business.

The firm’s earnings per share estimate excluding IPR&D expenses stands at $1.72, compared to consensus of $1.61, though UBS expects approximately $1.5 billion in IPR&D expense from the BioNTech (NASDAQ:BNTX) collaboration to impact second-quarter and full-year 2025 EPS by about $0.60.

UBS also highlighted that the early launch trajectory for Cobenfy will be particularly important for BMY’s share performance and multiple expansion, especially following the recent disappointing ARISE readout in adjunctive schizophrenia, with the firm projecting second-quarter Cobenfy sales of $30 million compared to consensus estimates of $33 million. Worth noting, BMY offers a significant 5.1% dividend yield and has maintained dividend payments for 55 consecutive years. For deeper insights into BMY’s valuation and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, which includes 12 additional exclusive ProTips.

In other recent news, Bristol Myers Squibb reported positive outcomes from its Phase 3 clinical trial for the psoriatic arthritis drug Sotyktu, with 54.2% of patients achieving significant symptom improvement at Week 16. The company also presented encouraging results for its CAR T cell therapy, lisocabtagene maraleucel, showing a 95.5% response rate in patients with relapsed or refractory marginal zone lymphoma. Furthermore, Bristol Myers Squibb showcased new data on its targeted protein degradation platform at the European Hematology Association Annual Congress, highlighting promising results for investigational agents in multiple myeloma and non-Hodgkin lymphoma. In analyst coverage, Cantor Fitzgerald maintained a neutral rating on Bristol Myers Squibb, citing upcoming data for its Alzheimer’s treatment as a critical catalyst for the stock. Additionally, the company declared a quarterly dividend of $0.62 per share on its common stock, maintaining its consistent dividend payment schedule. These developments reflect Bristol Myers Squibb’s ongoing efforts in advancing its treatment portfolio and maintaining shareholder value.

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