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Analysts’ Recommendations for Bristol-Myers Squibb in March 2018

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Apr. 2 2018, Updated 6:30 a.m. ET

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.

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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.

Valuation multiples

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).

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