Bristol-Myers Squibb (BMY): Takeout Unlikely - BMO

BMO Capital analyst, Alex Arfaei, reiterated his Market Perform rating on shares of Bristol-Myers Squibb Co. (NYSE: BMY) along with his price target of $45 as he expects good results but a net negative May and June. Considering the weak outlook, he believes a takeout is unlikely.

The analyst expects the IO franchise to exceed expectations (15% Opdivo beat), while EPS should be ~7% above consensus. However, he believes the focus remains on long-term growth prospects of the IO franchise.

The analyst is anticipating FDA approval of Merck's Keytruda + chemo in 1L NSCLC in May followed by a relatively uneventful ASCO for Bristol. ASCO will likely strengthen his argument that IO will become increasingly fragmented, increasing uncertainty about BMY's IO franchise and lowering the probability of a takeout/merger.

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 $53.44 yesterday.

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