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Research Alert: CFRA Lowers Rating On Shares Of Bristol-myers Squibb Company To Hold From Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price to $60 from $73, 9.7x our 2027 EPS estimate, a discount to BMY's 10-year historical forward P/E average. We keep our 2026 EPS estimate at $6.30 and our 2027 EPS forecast at $6.18. While we think the company has been successfully navigating a period of important transition with solid performance from its growth portfolio, we think declines in the legacy products could put pressure on top-line growth in the next quarters. While key drug Eliquis (anticoagulant) performed better than anticipated in Q1, demonstrating resilience with revenues of $4.1B, we think competition will get fiercer with generic entry as the European patent expired on May 19. We think going forward, the key focus for BMY will be pipeline progress and the evolution of sales from new drugs. However, we see top-line revenue declines in the next two years while leverage remains more elevated versus peers due to recent acquisitions. Shares of BMY rose by nearly 19% since we gave our Buy rating on September 30.

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