Biopharmaceutical Stock Flat Despite Upgrade to "Buy"

The firm also lifted its price target to $74 from $66

Assistant Editor
Apr 13, 2021 at 9:13 AM
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The shares of biopharmaceutical name Bristol-Myers Squibb Co (NYSE:BMY) are up 0.6% at $63.07 in pre-market trading, after Truist Securities upgraded the stock to "buy" from hold," with a price-target hike to $74 from $66. The analyst in coverage cited late-stage pipeline assets, also noting the FDA's recent approval of multiple treatments.

On the charts, both the 40- and 140-day moving averages moved in as support in mid-March -- recently catching the equity's pullback after it was rejected by the $64 level. Year-to-date, the equity is up just 1.1% coming into today. 

Analysts were already leaning bullish ahead of today's upgrade, though there's still some room for additional upgrades. Of the 14 analysts in coverage, five carried a tepid "hold" rating, with the remaining nine at a "buy" or better. Meanwhile, the 12-month consensus price target of $75.88 is a 21% premium to last night's close. 

Over in the options pits, 4.06 calls have been bought for every put in the last 50 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 69% of all other readings from the past year, indicating calls being picked up at a reasonably fast rate. 

Lastly, now looks like a decent time to weigh in on BMY's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 21% stands higher than 20% of readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

 

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