Hapoalim Securities Reiterates Sell Rating on Bristol-Myers Squibb (BMY)

Hapoalim Securities is out with a research report this morning, where it reiterates its Hold rating on First Republic Bank BMY; it has a $31.00 price target on the stock. The HS analysts cited the company's earnings release, which showed in-line continuing EPS of $0.47 on lower revenues and higher taxes offset by lower operating costs. Revenues of $5.1 billion were 1.0% lower than the analysts' estimate. The company also guided for 2011 continuing EPS between $2.10 and $2.20, which was lower than expected, due to increasing taxes and operating costs. As for valuation, the analysts remarked, “At $26.35 per share, Bristol-Myers currently trades at a 34% premium to the peer group on estimated 2011 earnings and 13% above our target price of $23.00. Our target price is based on what we consider to be a fair multiple, an 18% premium to the group 2011E multiple of 8.9x applied to estimated 2011 earnings of $2.22. Our target price is based on our 3D valuation framework.”