Dallas, Texas 05/16/2014 (FINANCIALSTRENDS) – Bristol-Myers Squibb Co. (NYSE:BMY)’s stock yesterday received mixed updates from analysts as the stock was downgraded by investment analysts at BMO capital whereas equity analyst at Leerink Partners LLC noted that the current price levels offer a buying opportunity. Analyst Leerink believes that the company may file the data from its two studies by 2H14 and the toxicity noted with its Yervoy is not uncommon.
BMO Capital’s Note:
Bristol-Myers Squibb Co. (NYSE:BMY) stock was downgraded to a ‘market perform’ rating from an ‘outperform’ rating by the equities research analysts at BMO Capital. The analysts now maintain a price target of $55 which has been reduced from their previously announced price target of $60. The downgrade was following the review of Bristol-Myers’ ASCO abstracts.
BMO Capital analyst Alex Arfaei noted that it was wrong to extrapolate strong efficacy seen with Nivo plus Yervoy combo in treating melanoma to lung and kidney cancer. The Nivo plus Yervoy data for lung cancer showed moderate 22% response coupled with a poor adverse event profile. In addition the combo of Nivo plus Tarceva also does not seem to be adding much with added toxicity noted with the combo.
Arfaei noted that at BMO Capital, analysts have lowered the peak IO sales forecast to $12.9 billion from $15.3 billion.
Overall Analyst View:
From total of 20 analysts following the stock of Bristol-Myers Squibb Co. (NYSE:BMY), four analysts maintain a ‘strong buy’ rating; eight analysts maintain a ‘buy’ rating; seven analysts maintain a ‘hold’ rating; and one analyst maintains an ‘underperform’ rating for the stock. The average price target for the stock is around $55.
On Thursday, the stock closed at $48.93, losing 6.12% from its previous close. The stock traded with significantly higher volumes of 28.56 million shares as compared to its average 30 day trading volume of 8.18 million shares.