Raymond James maintains market perform rating on Bristol Myers Squibb stock

Published 02/06/2025, 16:16
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On Monday, Raymond (NSE:RYMD) James analysts maintained their Market Perform rating for Bristol-Myers Squibb Co. (NYSE: NYSE:BMY), a prominent player in the pharmaceuticals industry with a market cap of nearly $99 billion. According to InvestingPro data, the company maintains "GREAT" financial health with strong profit metrics. The decision follows Bristol-Myers Squibb’s announcement of a 50/50 codevelopment agreement with BioNTech (NASDAQ:BNTX). The collaboration focuses on BioNTech’s bispecific antibody, BNT327, designed for solid tumors.

The analysts noted that the agreement indicates Bristol-Myers Squibb’s efforts to enhance its growth portfolio and address the anticipated revenue gap from Opdivo post-2028. With a robust dividend yield of 5.14% and a 55-year track record of maintaining dividend payments, the company shows strong commitment to shareholder returns. They highlighted that the recent results of ivonescimab in non-small cell lung cancer (NSCLC) have not diminished pharmaceutical interest or confidence in this mechanism.

The move is seen as beneficial for Bristol-Myers Squibb, given the advanced stage of BNT327’s development and the shared cost structure. This arrangement is expected to mitigate some risks associated with Phase 3 development.

Despite the positive outlook, the analysts pointed out that uncertainties remain regarding the overall survival benefit in key indications over PD-(L)1. Additionally, there is ongoing debate about the relative advantage of BNT327’s molecular design compared to its competitors.

In other recent news, BioNTech has entered a global co-development and co-commercialization agreement with Bristol-Myers Squibb for their bispecific antibody, BNT327, targeting solid tumors. This collaboration includes a 50/50 split in development and manufacturing expenses, with BioNTech receiving an upfront payment of $1.5 billion and up to $7.6 billion in potential milestone payments. BioNTech’s partnership is expected to expedite BNT327’s market entry, with ongoing trials for various cancers. JPMorgan analysts have maintained a Neutral rating for BioNTech, highlighting the deal’s potential to enhance its oncology pipeline. Meanwhile, Bristol-Myers Squibb has received approval from the European Commission for a new subcutaneous formulation of Opdivo, which demonstrated noninferiority to its intravenous counterpart in a Phase 3 trial. Citi analysts have reiterated a Neutral rating on Bristol-Myers Squibb, following promising early results from its drug iza-bren in lung cancer patients. Additionally, BMO Capital Markets maintained its Market Perform rating on Bristol-Myers Squibb, noting a slight increase in prescriptions for its schizophrenia medication, Cobenfy.

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