Valued at $90.3 billion by market cap, Bristol-Myers Squibb Company (BMY) is a top biopharmaceutical company that focuses on cancer, inflammation, cardiovascular disease, and other serious diseases. Founded in 1887 and headquartered in Princeton, New Jersey, its leading drug, Opdivo, drives its oncology portfolio alongside drugs like Revlimid and Eliquis.
Shares of the biopharma company have underperformed the broader market considerably over the past year. BMY has declined 34.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.9%. In 2024, Bristol-Myers Squibb’s stock fell 14%, while the SPX is up 11.1% on a YTD basis.
Narrowing the focus, BMY’s underperformance looks more pronounced in comparison to the US Pharmaceuticals Ishares ETF (IHE). The exchange-traded fund has gained 12.9% over the past year, significantly outperforming BMY’s double-digit decline.
Bristol Myers Squibb's shares plummeted 8.5% on April 25 despite a better-than-expected of its Q1 earnings results. Due to recent acquisitions and collaborations, the company slashed its fiscal 2024 earnings guidance, now expecting between $0.40 and $0.70 per share, down from the previously projected $7.10 to $7.40 per share.
For the current fiscal year, ending in December, Street expects BMY’s EPS to decline 92.1% year over year to $0.59. Moreover, the company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on one other occasion.
Among the 22 analysts covering BMY stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, one “Moderate Buy,” 16 “Holds,” and one “Strong Sell.”
The consensus rating has been consistent over the past months.
On April 29, Deutsche Bank cut Bristol-Myers Squibb's price target from $55 to $53 while maintaining a “Hold” rating, citing concerns over revenue and growth visibility due to recent cost-cutting measures and strategic program eliminations.
However, the mean price target of $53.17 suggests a 20.5% premium to BMY from current levels. The Street-high target of $67 represents an upside potential of 51.9%.
On the date of publication, Kritika Sarmah 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.
