Investing.com — Jefferies upgraded Bristol-Myers Squibb Company (NYSE:) from Hold to Buy and raised its price target by $7 to $70 amid improved confidence in the company’s product pipeline, disciplined spending and greater clarity on regulatory risks.
The brokerage highlighted the potential of BMY’s schizophrenia drug, Cobenfy, predicting it would become a more than $10 billion product.
Jefferies noted positive momentum in recent launches, including Cobenfy’s label hitting best-case scenarios, and forecast stronger-than-expected sales for 2024 and 2025.
The report also expressed optimism about Cobenfy’s trials in Alzheimer’s disease, assigning a 70% chance of success for a pivotal Phase 3 trial, and noted the drug’s potential efficacy in bipolar disorder, where trials are expected to will start in mid-2025.
Bristol Myers remains exposed to loss of exclusivity risk for more than 70% of its revenue, but Jefferies said the company’s improved visibility of its financial performance and promising pipeline justified the upgrade.
