Bristol Myers Trades At Trough Valuation — Analyst Says Pipeline Upside Is Being Ignored

BofA Securities upgraded Bristol Myers Squibb & Co. (NYSE:BMY), citing near-term catalysts. “What we like about BMY is the valuation coupled with our forecast for a flattish 7-year outlook with risk-adjusted pipeline and favorable mix-related margin tailwinds. When we factor in multiple pipeline-driven upside scenarios (specifically in ’26E), we think the risk-reward is compelling,” analyst Jason Gerberry wrote in an investor note on Monday. BofA upgraded from Neutral to a Buy rating and raised price forecast from $52 to $61, based on a 10x P/E multiple applied to FY27E EPS (from 8x 2026E). Also Read: BioNTech-Bristol Drug Shows Hope For Breast Cancer Patients With Few Options The Buy rating is predicated on the strength of Bristol-Myers’ R&D pipeline, in which BofA expects 4-6 programs to deliver key de-risking catalysts in the near term. While Bristol-Myers’ impending product patent loss of exclusivity likely drives a discount to the share price, analyst Gerberry sees this as a buying opportunity, as conservative trough EPS provides a floor for the share price, and strong pharma pipeline stories can work once investors have visibility into the next product cycle. “We believe now is an optimal entry point – BMY shares trade at a sector-low multiple due to impending product LOEs (loss of exclusivities), but we see a stock trading at a fair multiple of trough EPS under harsh assumptions,” analyst Gerberry wrote on Monday. BofA sees favorable risk/reward as Bristol-Myers approaches a catalyst-rich 2026 with multiple scenarios that could position the company for a return to growth in 2029+. In November, Bristol Myers, in collaboration with Johnson & Johnson (NYSE:JNJ), decided to stop the Phase 3 Librexia ACS trial evaluating the efficacy and safety of milvexian when added to the standard of care (conventional antiplatelet therapy) for patients after a recent acute coronary syndrome (ACS) event. The US drug maker narrowed fiscal 2025 earnings guidance from $6.35-$6.65 to $6.40-$6.60 compared to the consensus of $6.38. The company raised its 2025 sales guidance from $46.5 billion-$47.5 billion to $47.5 billion-$48 billion compared to the consensus of $47.33 billion, primarily reflecting the continued strong performance of the Growth Portfolio. BMY Price Action: Bristol-Myers Squibb shares were up 3.39% at $54.18 at the time of publication on Monday, according to Benzinga Pro data. Read Next: Broadcom’s $6 Billion AI Quarter Carries A Risk Nvidia Bulls Don’t Worry About Photo: Shutterstock