Analyst: Positive Catalysts Can't Save This Pharma Stock

Struggling BMY is a price-target cut risk going forward

Deputy Editor
Feb 6, 2024 at 9:00 AM
facebook X logo linkedin

Biopharmaceutical stock Bristol-Myers Squibb Co (NYSE:BMY) is in focus this morning, after a downgrade to "neutral" from "buy" at Redburn-Atlantic. The analyst in coverage also lowered its price target to $54 from $77 -- still a 12.6% premium to last night's close at $47.98. BMY is fractionally lower before the open.

The Wall Street analyst cited concerns regarding Bristol-Myers Squibb's product pipeline and market challenges. It argued that any positive impact from the company's recent acquisitions won't be enough to overcome headwinds against its key products.

Leerink Partners and Morgan Stanley yesterday cut their price targets on BMY, yet the average 12-month target price of $58.20 is still a 21.3% premium to last night's close, indicative that more bear notes could be on the way.

Bristol-Myers Squibb stock is underperforming the broader market, down 6.5% in 2024 versus the SPDR S&P 500 ETF Trust's (SPY) 3.6% year-to-date lead. The equity is down 35.6% over the last 12 months, and just yesterday fell to a nearly four-year low of $47.68.

Short-term options traders are also more pessimistic than usual. This is per BMY's Schaeffer's put/call open interest ratio (SOIR) of 0.73 that ranks higher than 92% of readings from the past 12 months.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI