Stock price movements and valuation
On June 3, Bristol-Myers Squibb (BMY) closed at $46.12, 1.65% higher than the previous close, 4.11% higher than its 52-week low price of $44.30, and 27.59% lower than its 52-week high price of $63.69. The company’s market capitalization is $76.23 billion, and its PE, forward PE, PEG (PE to Growth), PS (price-to-sales), PB (price-to-book), and PC (price-to-cash) ratios were 14.60x, 10.41x, 2.92x, 3.27x, 4.95x, and 8.70x, respectively.
On June 3, Celgene (CELG) closed at $94.61, 0.87% lower than the previous close, 61.48% higher than its 52-week low price of $58.59, and 2.53% lower than its 52-week high price of $97.07. The company’s market capitalization is $67.00 billion and PE, forward PE, PEG, PS, PB, and PC ratios were 14.38x, 7.53x, 0.80x, 4.25x, 8.14x, and 8.71x, respectively. Compared to Bristol-Myers Squibb, Celgene is trading at a lower PE, forward PE, and PEG ratios but higher PS, PB, and PC ratios.
Analysts’ recommendations and target price
The consensus recommendation for Bristol-Myers Squibb is a “buy,” while the consensus for Celgene is a “hold.” Wall Street analysts expect an upside potential of 21.64% for Bristol-Myers Squibb based on the company’s closing price on June 3. Analysts first increased the company’s 12-month consensus target price from $56.60 in February to $57.80 in March but then reduced it to $57.30 in April and to $56.10 in May. The highest and lowest price target estimate for the company is $68 and $48, respectively. Out of 15 analysts covering Bristol-Myers Squibb, three recommend a “strong buy,” four recommend a “buy,” and eight recommend a “hold.”
Wall Street analysts expect an upside potential of 2.53% for Celgene based on the company’s closing price on June 3. Analysts first reduced the company’s 12-month consensus target price from $97.66 in February to $96.83 in March but then raised it to $97.00 in April and May. The highest and lowest price target estimate for the company is $104 and $84, respectively.
Celgene’s current target price tracks closely with the acquisition price offered by Bristol-Myers Squibb in the cash and stock transaction. The low spread of Celgene’s current share price as compared to its acquisition price highlights the high probability of the completion of the Bristol-Myers Squibb-Celgene deal, expected by the third quarter of 2019.
Out of 21 analysts covering Celgene, one recommends a “strong buy,” one recommends a “buy,” and 19 recommend a “hold.”