Jefferies Upgrades Bristol-Myers Squibb Co. (BMY) to Buy, "Prime Target for Acquisition"
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Price: $48.86 -0.27%
Rating Summary:
6 Buy, 26 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
6 Buy, 26 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Jefferies upgraded Bristol-Myers Squibb Co. (NYSE: BMY) to Buy with a price target of $35 (up form $27).
The firm comments, "Two very positive things have happened. Firstly Yervoy has got off to a spectacular launch during Q2'11. Secondly, the competitive landscape for SPAF has shifted dramatically in favour of Eliquis. We expect underlying revenue and EPS growth will rapidly take off mid-term. This is likely to make the company a prime target for acquisition during the peak of its patent cliff in 2012. As a result we have upgraded our recommendation to Buy."
On a potential takeout, the firm notes that pricing pressures aren't going away for the industry and consolidation will play a role in the future. Recent launches and late stage pipeline make Bristol-Myers A prime target for further consolidation, the firm believes. "We speculate that Pfizer's (NYSE: PFE) co-location of assets and shared interest in Eliquis are more than coincidentally linked to its recent heavy R&D cuts and refocusing of its business onto innovative pharmaceuticals."
For more ratings news on Bristol-Myers Squibb Co. click here and for the rating history of Bristol-Myers Squibb Co. click here.
Shares of Bristol-Myers Squibb Co. closed at $30.53 yesterday.
The firm comments, "Two very positive things have happened. Firstly Yervoy has got off to a spectacular launch during Q2'11. Secondly, the competitive landscape for SPAF has shifted dramatically in favour of Eliquis. We expect underlying revenue and EPS growth will rapidly take off mid-term. This is likely to make the company a prime target for acquisition during the peak of its patent cliff in 2012. As a result we have upgraded our recommendation to Buy."
On a potential takeout, the firm notes that pricing pressures aren't going away for the industry and consolidation will play a role in the future. Recent launches and late stage pipeline make Bristol-Myers A prime target for further consolidation, the firm believes. "We speculate that Pfizer's (NYSE: PFE) co-location of assets and shared interest in Eliquis are more than coincidentally linked to its recent heavy R&D cuts and refocusing of its business onto innovative pharmaceuticals."
For more ratings news on Bristol-Myers Squibb Co. click here and for the rating history of Bristol-Myers Squibb Co. click here.
Shares of Bristol-Myers Squibb Co. closed at $30.53 yesterday.
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