Analysts rate Bristol-Myers Squibb Company (BMY:NYE) with a Buy rating and a $74 target

STA Research
by: STA Research
Bristol-Myers Squibb Company

Based on the Bristol-Myers Squibb stock forecast from 11 analysts, the average analyst BMY stock price target is USD 74.50 over the next 12 months. Bristol-Myers Squibb Company’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Bristol-Myers Squibb stock forecast is Bearish, which is based on 4 positive signals and 12 negative signals. At the last closing, Bristol-Myers stock price was USD 66.75Bristol-Myers stock price has changed by -7.80% over the past week, -7.03% over the past month and -0.68% over the last year.

About Bristol-Myers Squibb Company (BMY;NYE):

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. The company was founded in 1887 and is headquartered in New York, New York.

 

What we like:

Underpriced on cashflow basis:

BMY stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow:

BMY dividend history shows that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

BMY dividend history shows that the company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth:

Bristol-Myers stock price has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Low market capitalization:

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns:

BMY stock dividend has under-performed its peers on annual average total returns in the past 5 years.

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

BMY stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity:

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization:

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the BMY stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

BMY stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

Bristol-Myers stock price has shown below median earnings growth in the previous 5 years compared to its sector

Disclaimer

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