Bristol-Myers Squibb Company Stock Price Targets
Bristol-Myers Squibb Company (BMY) Stock Price Targets & Analysis
Comprehensive analysis of short, mid, and long-term price targets for Bristol-Myers Squibb Company (BMY).
Give me a comprehensive price target analysis for Bristol-Myers Squibb Company (BMY).
I have drawn the horizontal trendlines for Bristol-Myers Squibb (BMY) at the specified low, median, and high price targets, extending 30 days into the future.
Executive Summary
Bristol-Myers Squibb (BMY) exhibits a solid valuation with a current price of approximately $48.44, supported by a strong market cap and favorable fundamentals. The stock is trading below its high analyst price target, with upside potential identified at the median ($51) and high ($68) levels. Technical indicators suggest a modest recovery and bullish momentum, aligning with moderate to high long-term growth opportunities.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | $98.6 billion |
| P/E Ratio (Trailing) | 19.45 |
| Forward P/E | 6.89 |
| Price-to-Book | 5.65 |
| Return on Equity | 29.3% |
| Profit Margins | 10.58% |
| Debt to Equity | 291.55 (high, indicating leverage) |
| Cash & Equivalents | ~$13.6 billion |
| Total Debt | ~$50.99 billion |
| Dividend Yield | 5.12% |
Despite high debt levels, the company maintains healthy margins and cash flow, making dividend payments sustainable.
Earnings Analysis
- Recent Earnings: The latest net income from continuing operations is approximately $1.31 billion. EBITDA shows consistent quarterly performance, indicating stable operational cash flow.
- EPS Trends: Small declines in EPS in recent periods, but overall stability with a current EPS (~1.69) trending slightly downward over the short term.
- EPS Revisions: Positive upward revisions within the last 7 days (+7 for the current quarter, +11 for the 1-year period), indicating analyst sentiment turning more optimistic.
- Earnings Quality: Revenue growth remains stable, with margins supporting earnings sustainability. The company's focus on innovative therapies is likely to support future earnings expansion.
Technical Analysis
- The stock price is slightly above its 50-day moving average (~$47.1), suggesting a modest upward momentum.
- RSI (around 54) indicates neither overbought nor oversold conditions.
- MACD signals are neutral to slightly bullish, supporting a mild recovery phase.
Analyst Consensus & Price Targets
| Target Type | Price | Number of Analysts |
|---|---|---|
| Low | $34 | N/A |
| Median | $51 | 21 |
| High | $68 | N/A |
The median target implies a potential ~5.4% upside, with significant longer-term upside to the high target.
Price Target Analysis
- Short-Term (3 months): Expect consolidation around current levels (~$48). Key drivers include quarterly earnings and broader market sentiment.
- Mid-Term (12 months): Target around $51, justified by analyst consensus and technical upward trend. Catalyst includes pipeline approvals and positive earnings revisions.
- Long-Term (3+ years): Potential to reach or surpass $68, driven by new drug approvals, revenue growth from key portfolios, and overall sector expansion.
Key Risks & Opportunities
- Risks: High leverage may pose refinancing risks; patent expirations; regulatory hurdles.
- Opportunities: Pipeline developments; ongoing drug approvals; dividend yield attractiveness; sectoral demand for innovative treatments.
Investment Recommendation
Hold for the next 12-24 months due to valuation maturity but with strong upside potential. Investors should monitor earnings, pipeline developments, and sector dynamics. The stock offers an attractive dividend yield and long-term growth prospects with a potential upside of over 40% from current levels at the high target.
Please let me know if additional analysis or adjustments are required.