From Financial Modeling Prep: 2024-12-04 07:33:00

CFRA downgraded Bristol-Myers Squibb (NYSE:BMY) from Buy to Hold, maintaining a price target of $60 due to concerns over key drug revenue erosion and limited potential upside in the stock.

Valuation based on an 8.4x multiple of 2025 EPS estimate, reflecting a discount compared to historical P/E average. 2025 EPS projection slightly lowered from $7.18 to $7.13, highlighting challenges ahead.

Despite U.S. approval of Cobenfy (KarXT) for adult schizophrenia, Bristol-Myers’ current valuation reflects growth opportunities. Key revenue-generating drugs face loss of exclusivity, with Eliquis contributing $3 billion in Q3 sales and Revlimid experiencing sales erosion.

After a 21% rally since CFRA issued a Buy rating in July, the firm sees Bristol-Myers Squibb’s current valuation as fair.



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