Goldman Sachs Upgrades Bristol-Myers Squibb Co. (BMY) to Conviction Buy

(Updated - December 15, 2020 4:31 AM EST)

(updating comment)

Goldman Sachs analyst Terence Flynn upgraded Bristol-Myers Squibb Co. (NYSE: BMY) from Buy to Conviction Buy (from $86.00).

The analyst comments "We add Buy rated BMY to the Conviction List as we expect commercial execution, FDA approvals/subsequent launches, and pipeline data to drive upward estimate revisions and multiple expansion. On our estimates, BMY trades at the widest valuation discount in our sector (2021 P/E of ~8x vs. group average of ~13x), which in our view is tied to the magnitude of the company’s LOE cliff in the second half of the decade and debates about future revenue contribution from recently launched products and pipeline assets. We refresh our estimates across the board and add Mavacamten to our model following the closing of the Myokardia acquisition last month. We now model 2025 revenue from recently launched and pipeline assets of $13bn vs. GS prior/Visible Alpha consensus $8.5bn/$8bn. As a result our price target goes to $86 from $82."

For an analyst ratings summary and ratings history on Bristol-Myers Squibb Co. click here. For more ratings news on Bristol-Myers Squibb Co. click here.

Shares of Bristol-Myers Squibb Co. closed at $59.97 yesterday.

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