Key insights
- UBS reiterates a Buy rating on Bristol-Myers Squibb (BMY) with a $70 price target, driven by potential positive Phase III data for milvexian, a Factor XI inhibitor, expected by year-end 2026. This drug is seen as a key catalyst to offset future Eliquis revenue loss. Despite risks, positive data could lead to a significant stock rally, potentially expanding its P/E multiple. The company also announced a substantial development deal with Hengrui.
Investing.com - UBS reiterated a Buy rating and $70.00 price target on Bristol-Myers Squibb Co. (NYSE:BMY), citing upcoming clinical trial data as a key catalyst for the pharmaceutical company. The target suggests significant upside from the current price of $56.87, with InvestingPro data indicating the stock is undervalued based on its Fair Value analysis.
UBS analyst Michael Yee said Phase III atrial fibrillation data with milvexian, a Factor XI inhibitor, is expected by year-end 2026 and represents one of the biggest catalysts for Bristol-Myers this year. Johnson & Johnson owns half the drug economics.
The analyst described milvexian as the most important late-stage pipeline product that could drive $5 billion to $10 billion in new revenues and replace much of the Eliquis loss of exclusivity. Prior Factor XI data in atrial fibrillation has been mostly negative, with Bayer and Novartis both missing endpoints.
UBS estimates a 35% to 45% probability of success conservatively, or 50/50 at best. The firm sees Bristol-Myers stock moving up or down 15% from current levels following the data readout.
The analyst noted that generally low expectations and high perceived risk could lead to a rally if data is positive, with the stock’s 9 to 10 times price-to-earnings ratio potentially expanding to 12 times or higher on renewed investor interest in the pipeline story. The stock currently trades at a P/E of 15.94 with a PEG ratio of just 0.48, and InvestingPro Tips highlight that BMY is trading at a low P/E ratio relative to near-term earnings growth. The company also offers a 4.38% dividend yield and has maintained dividend payments for 56 consecutive years. For deeper insights, investors can access BMY’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro, which transforms complex data into actionable intelligence.
In other recent news, Bristol-Myers Squibb announced a significant development deal with Hengrui, valued at up to $15.2 billion, to develop 13 early-stage assets. This strategic collaboration spans multiple therapeutic areas, including hematology, immunology, and oncology. Following this announcement, both Bernstein and BMO Capital reiterated their Market Perform ratings for Bristol-Myers Squibb, with price targets set at $58.00 and $60.00, respectively. Additionally, the European Commission approved Bristol-Myers Squibb’s drug Sotyktu for treating active psoriatic arthritis in adults, marking the first approval of a TYK2 inhibitor for this condition in the European Union.
Moreover, BMO Capital raised its price target for Bristol-Myers Squibb to $60.00, highlighting the strong performance of Eliquis in the first quarter. The increased demand for Eliquis was noted as a primary driver for its success. Analysts from BMO Capital indicated that near-term clinical readouts will influence commercial expectations after the loss of exclusivity for some legacy products. These developments reflect ongoing strategic and regulatory advancements for Bristol-Myers Squibb.
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