Bristol-Myers Squibb target raised by TD Cowen

TD Cowen has adjusted its outlook on shares of Bristol-Myers Squibb Co. (NYSE: NYSE:BMY), increasing the price target to $53.00 from the previous $45.00 while the firm maintained its Hold rating on the pharmaceutical company's stock.

The adjustment came after a review of the company's financial model as the third quarter reached its midpoint. TD Cowen revised its estimates upwards for Bristol-Myers Squibb through the year 2030. Despite the increased estimates, the firm noted that the annual growth appeared variable, lacking a clear sustainable trend.

TD Cowen's analysis suggests that while there is an expectation of growth, the earnings per share (EPS) in 2030 might only be comparable to the reported EPS in 2023. The projection indicates that significant growth in profitability is not anticipated over the next several years.

Bristol-Myers Squibb reported strong second-quarter performance, with total revenue of $12.2 billion, a 9% increase from last year.

The robust performance was driven by sales from newer products such as Reblozyl, Camzyos, and Eliquis. Despite a decline in net earnings, the company's adjusted earnings stood at $2.07 per share, surpassing the estimated $1.63 per share by analysts.

Goldman Sachs raised its price target for Bristol-Myers Squibb from $55.00 to $57.00, retaining a Buy rating on the stock. This followed the company's strong market performance and positive outlook. However, Barclays and Deutsche Bank expressed concerns about the sustainability of the company's growth and downgraded and reduced their price targets for the stock, respectively.

On the regulatory front, the European Medicines Agency (EMA) has begun reviewing Bristol-Myers Squibb's applications for Opdivo in combination with Yervoy as a first-line treatment for adults with advanced hepatocellular carcinoma. The U.S. Food and Drug Administration (FDA) also granted approval to the company for its combination therapy designed to treat colorectal cancer in patients who have a specific genetic mutation.

InvestingPro Insights

As TD Cowen revises its price target for Bristol-Myers Squibb (NYSE:BMY), a look at real-time data from InvestingPro can provide investors with a broader perspective on the company's current financial health. With a market capitalization of $94.72 billion and a strong gross profit margin of 76.18% over the last twelve months as of Q2 2024, Bristol-Myers Squibb demonstrates a robust ability to generate earnings relative to its revenue. The company's revenue growth of 2.93% during the same period, while modest, is complemented by a significant dividend yield of 5.14%, showcasing its commitment to returning value to shareholders.

Two InvestingPro Tips that may interest investors are the company's aggressive share buyback strategy and the fact that it has maintained dividend payments for 54 consecutive years. These actions reflect management's confidence in the company's financial stability and its dedication to shareholder returns. Additionally, the InvestingPro product includes a total of 11 tips for Bristol-Myers Squibb, offering more in-depth insights for those considering an investment in the company.

While analysts have revised their earnings expectations downwards for the upcoming period, Bristol-Myers Squibb's valuation implies a strong free cash flow yield, according to InvestingPro. This suggests that despite the revisions, the company's stock may still be attractive to investors looking for cash-generative businesses. The InvestingPro Fair Value estimate of $52.26 aligns closely with analyst targets, indicating a potential upside from the previous closing price of $46.72.

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