Jefferies Downgrades Bristol Myers Squibb and Cuts Estimates (BMY)
Jefferies announced on Friday that it has lowered its rating on biopharmaceutical company Bristol Myers Squibb Co. (BMY).
The firm has downgraded BMY from a “Buy” to a “Hold,” and has given the company a $49 price target. This price target suggests a 7% upside from the stock’s current price of $45.63.
Analysts believe that the stock’s valuation is fair based on nivolumab strength. Despite its strength, analysts believe that “other areas of the business including the diabetes franchise and the Eliquis launch are not faring so well, which has led to some significant cuts in our revenue and EPS estimates.”
Jefferies has reduced estimates on the company by 9-10% based on lower expected revenue from Eliquis, Onglyza, Bydureon and Byetta.
Bristol Myers Squibb shares were down 41 cents, or 0.89% during Friday morning trading. The stock is up 40% YTD.
The Bottom Line
Shares of Bristol Myers Squibb Co. (BMY) have a 3.08% yield, based on Friday morning’s price of $45.42.
Bristol Myers Squibb Co. (BMY) is a “Recommended” dividend stock at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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