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On Monday, BMO Capital Markets maintained a Market Perform rating on Bristol-Myers Squibb Co. (NYSE:BMY), a pharmaceutical giant with a market capitalization of $109.8 billion and trailing twelve-month revenue of $48.3 billion, maintaining a consistent price target of $61.00. According to InvestingPro data, BMY currently offers an attractive 4.48% dividend yield and shows signs of being undervalued based on its Fair Value analysis. The firm's analyst highlighted the strong performance of Bristol's Cobenfy in the treatment of schizophrenia, noting a significant weekly increase in total prescriptions (TRx). The latest data shows a 9% week-over-week rise, reaching 1,573 prescriptions, marking a new peak for the medication. This positive development comes as the company approaches its next earnings report on April 24, 2025, where investors will be closely watching the performance of key products like Cobenfy.
BMO Capital expects Cobenfy to generate approximately $29 million in revenue for the first quarter of 2025, which would represent a 43% increase compared to the current consensus. The analyst emphasized that while the prescription growth for Cobenfy has been robust and the consensus revenue forecast is likely to be exceeded, the firm will keep a close eye on any adjustments to consensus estimates as the quarter ends and earnings approach.
The analyst's commentary reflects a careful examination of the weekly TRx data for Cobenfy provided by IQVIA. This data is critical for analysts to gauge the drug's market uptake and project future sales. The positive trend in prescription growth suggests a successful ongoing launch for the drug in the schizophrenia market. InvestingPro analysis reveals that BMY maintains a GOOD Financial Health Score, with particularly strong marks in profit and price momentum metrics. For deeper insights into BMY's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The expectation set by BMO Capital for Cobenfy's first-quarter revenue to surpass consensus estimates indicates the drug's strong market performance. However, the Market Perform rating suggests that the analyst believes the stock is valued appropriately given the current information.
Bristol-Myers Squibb's stock rating and price target remain unchanged as BMO Capital continues to monitor the pharmaceutical company's progress closely. The firm will be looking for any changes in sell-side estimates that could arise from the review of quarterly script data. Despite recent market volatility, with the stock showing an 8.35% decline over the past week, InvestingPro analysis suggests the company remains fundamentally sound, with additional ProTips and detailed metrics available to subscribers.
In other recent news, Bristol-Myers Squibb reported several key developments that could impact its financial outlook. The company announced that a European regulatory committee has endorsed a subcutaneous formulation of its cancer drug, Opdivo, which is awaiting a final decision from the European Commission. Additionally, Bristol-Myers Squibb received expanded approval from the European Commission for its CAR-T cell therapy, Breyanzi, to treat follicular lymphoma in adults who have undergone multiple prior therapies. Analyst insights from BMO Capital Markets and UBS have maintained a Market Perform and Neutral rating, respectively, on the company's stock, with price targets around $60 to $61. BMO highlighted the potential revenue from the schizophrenia drug Cobenfy, projecting 13,980 prescriptions in the first quarter of 2025, translating to approximately $28 million in revenue. UBS analysts noted a leveling off in Cobenfy's total prescriptions but still project significant sales, estimating between $18 million to $21 million for the first quarter of 2025. These developments reflect ongoing efforts by Bristol-Myers Squibb to innovate and expand its product offerings amidst challenges like patent expirations. Investors are closely watching these advancements as they assess the company's ability to sustain growth.
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