Bristol-Myers stock gets price target boost on COBENFY approval By Investing.com

On Friday, BMO Capital adjusted its price target on shares of Bristol-Myers Squibb Co. (NYSE:), raising it to $53.00 from the previous $48.00, while maintaining a Market Perform rating on the stock. This change follows the approval of COBENFY, a new medication developed by Bristol-Myers Squibb.

The approval of COBENFY, which does not carry a boxed warning, is seen as a significant development for the company. It is expected to be marketed at a list price of $1,850 for a 30-day supply, or approximately $22,500 annually, before any rebates or discounts are applied.

The recent approval by regulatory authorities is particularly noteworthy as it confirms the value of Bristol-Myers Squibb’s $12.7 billion acquisition of Karuna, the original developer of the drug. This move could potentially shift the narrative for the company as it faces a triple patent cliff with its existing drugs Revlimid, Eliquis, and Opdivo.

Analysts project that COBENFY could reach peak sales of $2.4 billion in the treatment of Schizophrenia and an additional $3.9 billion for Alzheimer’s psychosis. These estimates have contributed to the revised price target for Bristol-Myers Squibb shares, reflecting a more optimistic outlook for the company’s financial performance in the coming years.

In other recent news, Bristol-Myers Squibb has been making significant strides in the pharmaceutical industry. The company’s schizophrenia treatment, Cobenfy (KarXT), recently received FDA approval without a black box warning, underscoring its favorable safety profile. The medication, priced at approximately $1,850 per month, is slated for a commercial launch in 2025. Goldman Sachs reaffirmed a Buy rating for Bristol-Myers Squibb, setting a price target of $57.00.

The company is also making headway in multiple sclerosis treatment, reporting sustained reductions in brain volume loss in patients treated with Zeposia, according to the Phase 3 DAYBREAK trial. In other developments, Bristol-Myers Squibb’s blood thinner Eliquis has been selected by the Biden administration for price negotiations with the Medicare health program.

BMO Capital Markets maintained a Market Perform rating on Bristol-Myers Squibb shares while Jefferies kept its Hold rating, citing a 4% upside potential and raising its price target to $51.00. These assessments followed encouraging updates on the company’s oncology portfolio and a positive outlook on the company’s factor XIa inhibitor, milvexian.

InvestingPro Insights

Bristol-Myers Squibb’s recent developments and BMO Capital’s updated price target paint an optimistic picture for the company’s future. Delving into the latest real-time metrics from InvestingPro, Bristol-Myers Squibb boasts a Market Cap of approximately $101.61 billion, with a noteworthy Gross Profit Margin of 76.18% for the last twelve months as of Q2 2024. This high margin reflects the company’s strong ability to manage its production costs and pricing strategy effectively. Additionally, the company has experienced a Revenue Growth of 2.93% over the last twelve months, indicating a steady increase in sales.

InvestingPro Tips highlight that Bristol-Myers Squibb has not only raised its dividend for 3 consecutive years but has also maintained dividend payments for an impressive 54 consecutive years. This consistent dividend record underscores the company’s commitment to returning value to shareholders. Furthermore, the company has been actively managing its share capital, as evidenced by aggressive share buybacks. For investors looking for more comprehensive analysis, there are additional InvestingPro Tips available, providing deeper insights into Bristol-Myers Squibb’s performance and potential investment opportunities.

With the approval of COBENFY and the potential for significant revenue from new treatments, these financial metrics and strategic moves by management could reassure investors of the company’s growth trajectory. The InvestingPro Fair Value estimate of $56.68 also suggests that the stock may have further upside potential beyond the recent price target adjustments. For those interested in exploring the full range of insights, additional tips can be found on the InvestingPro platform.

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