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Analysts’ Recommendations for Bristol-Myers Squibb in 2Q17

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Analysts’ estimates

Analysts expect Bristol-Myers Squibb’s (BMY) top line to rise 4.4% to ~$5.1 billion in 2Q17. They expect its earnings per share to be $0.74 in the quarter.

BMY’s revenue growth is expected to be driven by its prioritized brands, including Opdivo, Empliciti, Eliquis, Orencia, Sprycel, and Yervoy. This growth is expected to be partially offset by lower sales of the company’s established brands.

The chart above shows analysts’ recommendations for Bristol-Myers Squibb stock over the last year.

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Analysts’ ratings and recommendations

Bristol-Myers Squibb’s stock price has fallen nearly 25.9% over the last 12 months, and it’s fallen ~4.2% year-to-date. Analysts’ estimates show that the stock has the potential to return ~3.3% over the next 12 months. 

Analysts’ recommendations show a 12-month target price of $57.77 for the stock, compared to its price of $55.95 per share on July 25, 2017. The mean target price for the stock is $57.77, while the median target price is $58.00.

A total of 23 analysts are tracking Bristol-Myers Squibb. Of these, ten analysts recommend “buys” on the stock, ten analysts recommend “holds,” and three analysts recommend “sells.” The consensus rating for Bristol-Myers Squibb is 2.4, which represents a moderate “buy” for value investors. Changes in analysts’ estimates and recommendations are based on changing trends in stocks’ prices.

Valuation multiples

Analysts expect BMY’s forward price-to-earnings multiple (or PE) to be 18.3x, while its forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is expected to be 15.8x as of July 25, 2017.

To divest company-specific risks, investors can consider ETFs such as the Fidelity MSCI Healthcare ETF (FHLC), which holds 3.1% of its total assets in Bristol-Myers Squibb. FHLC also holds 8.8% of its assets in Johnson & Johnson (JNJ), 3.0% in Celgene (CELG), and 4.6% in Gilead Sciences (GILD).

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