Goldman Sachs Raises Bristol-Myers (BMY) Target, Keeps Neutral Rating

Core Viewpoint - Goldman Sachs has raised the price target for Bristol-Myers Squibb Company (BMY) to $57 from $51 while maintaining a Neutral rating on the shares, indicating a balanced risk-reward profile for the stock [1] Group 1: Financial Performance - Bristol-Myers Squibb offers a dividend yield of 4.6% with a payout ratio near 85%, allowing some flexibility to support the dividend despite increasing pressures [1] - In the third quarter, sales from the growth portfolio rose 18% year over year to $6.9 billion, which helped offset a 12% decline in legacy revenue, resulting in a total revenue increase of 3% to $12.2 billion [4] Group 2: Product Portfolio - The company has a diverse portfolio that includes growth drugs with several years of patent protection and legacy products nearing the patent cliff or already lost exclusivity [3] - The growth portfolio is primarily led by the cancer treatment Opdivo, while Eliquis remains the top seller in the legacy group, although competition is increasing [4] Group 3: Strategic Response - Bristol-Myers Squibb is addressing the challenges posed by a patent cliff through a series of acquisitions aimed at strengthening its pipeline and diversifying market exposure [2]