Pharma Giant Bristol-Myers Stock At 52-Week Low: Analyst Sees Uncertainty In Near-Term Outlook

Bristol-Myers Squibb Co BMY shares are trading lower on continuous weakness following the disappointing Q3 earnings and a downward revision to the medium-term outlook.

The company reported that sales of the drug maker's popular Revlimid blood cancer treatment plunged due to competition from generics.

Also Read: Opdivo's Subcutaneous Formulation Shows Promise in Advanced Kidney Cancer: Bristol Myers Squibb's Latest Findings.

While the stock is now at a 52-week low and down 26.7% year-to-date, William Blair says it struggles to find confidence in the near-term outlook for the company. 

Hence, downgrading shares to Market Perform ahead of greater visibility into the new product launches and losses of exclusivity beyond Revlimid and Abraxane.

The company now sees over $10 billion in revenue from new product portfolio in 2026, compared to $10 billion - $13 billion in 2025.

It expects an adjusted operating margin target of over 37% through 2025 versus 40%+ through 2025.

William Blair analyst Matt Phipps writes that the updated guidance presents a potential reset for the company's growth portfolio, with the stock currently trading at a low valuation. 

Positive clinical developments and increased traction could lead to a higher stock multiple, potentially aligning with industry peers and driving up the share price significantly.

On the flip side, ongoing challenges and setbacks in new product launches are causing frustration. Building confidence in achieving the new guidance requires concrete execution. 

Several issues, such as headwinds for Abecma, formulary battles with Sotyktu and Zeposia, and the time required for cardiovascular accounts and patients on Camzyos therapy, will likely persist, delaying any substantial near-term improvement.

Price Action: BMY shares are down 3.69% at $51.02 on the last check Friday.