JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Wednesday, Jefferies maintained a Buy rating on Bristol-Myers Squibb Co. (NYSE:BMY), a prominent pharmaceutical company with $48.3 billion in annual revenue, while reducing the price target from $70.00 to $68.00. According to InvestingPro analysis, BMY is currently undervalued, trading at $49.82. The adjustment follows a clinical trial outcome for Cobenfy, a drug intended as an adjunct treatment for schizophrenia, which did not meet the statistical significance in its primary endpoint.
The trial results showed a -2.0 placebo-adjusted effect size, with a p-value of 0.11, indicating that the drug’s effectiveness was not statistically significant. However, a post-hoc analysis revealed a nominal benefit in a subset of patients not treated with risperidone, where Cobenfy demonstrated a -3.4 effect size and a p-value of 0.03. The company maintains a strong financial position with a 75.26% gross profit margin and has maintained dividend payments for 55 consecutive years, currently offering a 4.98% yield.
Despite the setback in the schizophrenia adjunctive treatment trial, Jefferies expressed continued optimism about the potential of Cobenfy in treating Alzheimer’s disease (AD) psychosis. The firm anticipates a 70% probability of success (PoS) for the drug in this indication. The expectation is based on the upcoming ADEPT-2 trial, which is projected to show approximately a 66% symptom improvement compared to placebo, with results expected in the second half of 2025.
Bristol-Myers Squibb’s stock price target revision by Jefferies reflects both the near-term trial results and the firm’s confidence in Cobenfy’s future prospects in a different treatment area. The company’s shares are being traded with the adjusted price target in mind as investors consider the drug’s potential impact on Bristol-Myers Squibb’s portfolio. For deeper insights into BMY’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports, including detailed analysis of the company’s pipeline and financial health metrics.
In other recent news, Bristol-Myers Squibb reported mixed results from its Phase 3 ARISE trial for Cobenfy, a potential adjunctive treatment for schizophrenia. The trial did not meet its primary endpoint of a statistically significant change in the Positive and Negative Syndrome Scale score compared to placebo. Despite this, a numerical improvement in symptoms was observed, and a subgroup analysis indicated a notable response among patients using risperidone. Meanwhile, Cantor Fitzgerald and Goldman Sachs both assigned a Neutral rating to Bristol-Myers Squibb, with a $55 price target, citing challenges such as generic competition and cost management. BMO Capital Markets maintained a Market Perform rating with a $61 target following the company’s ODYSSEY-HCM trial setback. This trial for Camzyos did not demonstrate the expected benefits for nonobstructive hypertrophic cardiomyopathy, affecting potential growth opportunities. Citi analyst Geoff Meacham also held a Neutral rating, emphasizing the importance of Bristol’s growth portfolio amidst upcoming patent expirations. These developments reflect the ongoing challenges and strategic shifts Bristol-Myers Squibb faces in its clinical and financial landscape.
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