Wells Fargo Securities Reiterates Outperform Rating on Bristol-Myers (BMY)

Wells Fargo Securities is out with a research report this morning, where it reiterates its Outperform rating on Bristol-Myers Squibb Co. BMY; the analysts cited positive Apixaban data released at the European Society of Cardiology (ESC). They WFS analysts noted that the data reduces overhang on apixaban and improves likelihood of FDA approval. They are modeling a 2012 launch of Apixaban with 50% risk-adjusted probability of approval BMY’s 2010 and 2011 estimates are unchanged at $2.12 and $2.20, respectively. As for the methodology behind their valuation, the WFS analysts remarked, “Our DCF analysis assumes WACC of 8.8% and a terminal growth rate range of 2.0%-3.0%. Risks to the stock trading to our valuation range include continued sluggish Onglyza prescription growth, development delay for dapagliflozin or ipilimumab, and continued regulatory setback for belatacept.”