Credit Suisse Sees Uncertainty On New Product Launch Execution & Growth For Bristol Myers

Credit Suisse has initiated coverage on Bristol-Myers Squibb Co BMY with a Neutral rating and a price target of $78.
The analysts believe management continues to perform well in its immuno-oncology, immunology, and hematology franchises and its pipeline.
However, the company has the lowest growth profile among its peer set, stemming from key losses of exclusivity (LOEs), which could be overwhelming without M&A. This risk/reward is well reflected in valuation with a 9.7x one-year forward P/E.
Related: US Supreme Court Throws Out Bristol Myers Appeal On Cancer-Drug Related Patent With Gilead.
Multiple expansions should come from successful launches (Sotyktu, Camzyos, and cell therapies). Still, launch expectations are too high. The analysts expect to see execution before being comfortable with consensus expectations.
Against an uncertain macro backdrop, low-growth value stocks like BMY underperforming higher-growth peers.
Price Action: BMY shares are trading up 0.03% at $77.18 on the last check Friday.
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