Bristol Myers Trades At Trough Valuation — Analyst Says Pipeline Upside Is Being Ignored

Core Viewpoint - BofA Securities upgraded Bristol Myers Squibb & Co. to a Buy rating, highlighting the company's valuation and a favorable risk-reward scenario due to its pipeline and margin tailwinds [1][2]. Group 1: Rating and Price Forecast - BofA upgraded Bristol Myers from Neutral to Buy and raised the price forecast from $52 to $61, applying a 10x P/E multiple to FY27E EPS [2]. - The Buy rating is based on the strength of Bristol-Myers' R&D pipeline, with expectations of 4-6 programs delivering key de-risking catalysts in the near term [3]. Group 2: Market Position and Strategy - Analyst Gerberry views the impending product patent loss of exclusivity as a buying opportunity, suggesting that conservative trough EPS provides a price floor, and visibility into the next product cycle could enhance investor confidence [4]. - The company is seen as trading at a sector-low multiple due to impending product LOEs, but is considered to be at a fair multiple of trough EPS under harsh assumptions [5]. Group 3: Financial Guidance and Performance - Bristol Myers narrowed its fiscal 2025 earnings guidance from $6.35-$6.65 to $6.40-$6.60, aligning closely with the consensus of $6.38 [6]. - The company raised its 2025 sales guidance from $46.5 billion-$47.5 billion to $47.5 billion-$48 billion, reflecting strong performance from its Growth Portfolio, surpassing the consensus of $47.33 billion [7]. - At the time of publication, Bristol-Myers Squibb shares were up 3.39% at $54.18 [7].