Credit Suisse Downgrades Bristol-Myers Squibb Co. (BMY) to Neutral
- Health, tech stocks extend Wall Street record-setting rally
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Credit Suisse downgraded Bristol-Myers Squibb Co. (NYSE: BMY) from Outperform to Neutral with a price target of $63.00 following news Friday that its CheckMate-026 (CM-026) Study for Opdivo in 1st line non-small cell lung cancer (NSCLC) missed its primary endpoint.
Analyst Vamil Divan commented, "While we are not fans of reacting to news Friday's developments are too significant and surprising for us to maintain our bullish stance on BMY. We remain bullish on the I-O market overall and still have robust I-O franchise estimates for BMY, with ~$8.5Bn in 2020 and >$10Bn in 2023, driving operating margins up from 23% in 2015 to 36% in 2023. Given how leveraged BMY is to I-O, however, even these rather bullish estimates still give us a DCF valuation of $61, making it very difficult for us to continue recommending the stock at this time. Our new blended target price is $63, which is a 75%/25% blend of DCF and relative valuation, with our relative based on 24.0x our new 2017 EPS of $2.90. Conversations with investors lead us to wonder if BMY may be a more attractive takeout target now, but we think potential buyers would want to wait and see how BMY's position in I-O gets sorted out before considering stepping in."
Shares of Bristol-Myers Squibb Co. closed at $63.28 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MKM Partners Raises Price Target on Finisar (FNSR) to $43 Following 2Q
- Jefferies Raises Price Target on Finisar (FNSR) to $37 Following 2Q Beat and Raise
- Finisar (FNSR) PT Raised to $44 at Needham & Company, Estimates Raised Sharply
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Downgrades
Related EntitiesCredit Suisse
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!