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Princeton, New Jersey-based Bristol-Myers Squibb Company (BMY) is a leading biopharmaceutical company that discovers, develops, licenses, manufactures, markets, and sells innovative medicines across several therapeutic areas. Valued at a market cap of $93.6 billion, the company offers products for oncology, haematology, immunology, cardiovascular, and neuroscience, among others.
This healthcare giant has lagged behind the broader market over the past 52 weeks. Shares of BMY have declined 6.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 17%. Moreover, on a YTD basis, the stock is down 18.7%, compared to SPX’s 8.2% gain.
Narrowing the focus, BMY has also underperformed the SPDR S&P Pharmaceuticals ETF’s (XPH) 1.8% drop over the past 52 weeks and 2.2% loss on a YTD basis.
On Jul. 31, BMY released its Q2 results. The company’s top line grew marginally year-over-year to $12.3 billion. Lower legacy portfolio revenue was more than offset by higher sales in the growth portfolio. Meanwhile, on the earnings front, its adjusted EPS of $1.46 declined 29.5% from the year-ago quarter, whereas its adjusted net income fell 27.1% year-over-year, reaching $3.6 billion. Looking ahead to fiscal 2025, BMY raised its revenue guidance to a range of $46.5 billion to $47.5 billion, and updated its adjusted EPS outlook to be between $6.35 and $6.65.
For the current fiscal year, ending in December, analysts expect BMY’s EPS to grow by a notable 446.1% year over year to $6.28. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 26 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on seven “Strong Buy,” 18 "Hold,” and one "Strong Sell” rating.
The configuration has remained consistent over the past three months.
On Jul. 29, Carter Gould from Cantor Fitzgerald maintained a “Hold” rating on BMY with a price target of $55, indicating a 19.6% potential upside from the current levels.
The mean price target of $55.48 represents a 20.7% premium from BMY’s current price levels, while the Street-high price target of $68 suggests an ambitious upside potential of 47.9%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
