Bristol-Myers Squibb Shares Rise After Analyst Upgrades, Positive Pipeline Outlook

Bristol-Myers Squibb Inc. BMY shares saw are trading higher Monday. Jefferies analyst, Akash Tewari, raised his rating on the stock from Hold to Buy and increased the price target from $63 to $70. Here’s what you need to know.

What To Know: The analyst's upgrade comes after increased confidence in several aspects of Bristol-Myers Squibb's business, particularly its pipeline and upcoming product launches. Tewari highlighted three key reasons for the upgrade.

Tewari believes Cobenfy (KarXT), a treatment for schizophrenia and bipolar disorder, is on track to become a $10 billion-plus drug. He is bullish on the drug’s launch in schizophrenia, as well as its potential in treating Alzheimer’s psychosis and bipolar disorder. He expects strong sales growth in the coming years, with a 2025 forecast of $215 million, significantly above consensus estimates.

The analyst expressed confidence that Milvexian, a drug in development for atrial fibrillation, could achieve positive results in non-inferiority trials, further supporting the company’s growth prospects. He also noted improved visibility on Bristol-Myers Squibb's financials, driven by positive momentum from recent product launches and growing clarity on cost control measures. As a result, he raised his earnings-per-share projections, expecting the company to reach EPS floor of $6 in the near future.

Additionally, the company's ongoing collaboration with Immatics N.V. remains intact, despite the recent termination of other partnership agreements, including the allogeneic and opt-in collaborations with BMS. While this move reflects ongoing portfolio prioritization efforts, the termination does not require Bristol-Myers Squibb to refund any of the upfront payments.

With a new price target of $70, Jefferies sees upside potential in Bristol-Myers Squibb's stock.

BMY Price Action: Bristol-Myers Squibb shares were up 0.14% at $55.86 at the time of writing, according to Benzinga Pro.

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