Wall Street analysts’ estimates
Bristol-Myers Squibb (BMY) surpassed analysts’ EPS (earnings per share) and revenue estimates in 4Q17, reporting EPS of $0.68 and revenue of $5.5 billion. Revenue growth was driven by prioritized brands Opdivo, Empliciti, Eliquis, Orencia, Sprycel, and Yervoy, and partially offset by lower established brand sales.
Analysts’ ratings and recommendations
The above chart shows analysts’ recommendations for Bristol-Myers Squibb stock over the last 12 months. Its stock price has risen ~11.3% over the last 12 months and ~1.3% in 2018. Analysts’ estimates show that the stock price may rise ~5.4% over the next 12 months. Analysts have set a 12-month target price of $65.40 per share, whereas the stock was trading at $62.06 per share on March 23, 2018.
Of the 23 analysts tracking Bristol-Myers Squibb, nine have recommended “buy,” 11 have recommended “hold,” and three have recommended “sell”. The consensus rating for Bristol-Myers Squibb is 2.6, which represents a moderate “buy” for long-term and value investors. Changes in analysts’ estimates and recommendations are based on the company’s performance, recent developments, and stock price changes.
As discussed earlier, Bristol-Myers Squibb was trading at a forward price-to-earnings multiple of 18.0x and a forward EV-to-EBITDA[1.enterprise value to earnings before interest, tax, depreciation, and amortization] multiple of 15.2x on March 26, 2018. The iShares Global Healthcare ETF (IXJ) holds 2.3% of its portfolio in Bristol-Myers Squibb, 2.3% in Abbott Laboratories (ABT), 4.6% in Novartis (NVS), and 4.6% in Pfizer (PFE).