BMY - Bristol-Myers Squibb: A Lost Decade?
2024-05-02 21:01:06 ET
Summary
- Bristol-Myers Squibb's share price reached new all-time highs in 2022, driven by a strong pipeline and new approvals.
- However, doubts arose about the company's ability to close the patent gap and achieve growth, leading to a sell-off.
- The company made several acquisitions, increasing its debt levels, but the long-term outlook remains uncertain.
- Mid-term outlook indicates that there will be many years without growth.
- Valuation seems low enough to rate it still a strong buy.
In 2022, investors finally began to hope that Bristol-Myers Squibb ( BMY ) shares would finally break out of their years-long sideways movement. Despite the weak overall market, the share price finally reached new all-time highs. The share price was driven by a strong pipeline and new approvals that appeared to be able to successfully close the patent gap .
However, there was a change in sentiment at the start of the new year. Not only did investors become more risk-averse again and defensive stocks tended to become less attractive, but the management of Bristol-Myers Squibb also had to significantly dampen optimism concerning growth . Doubts arose as to whether the patent gap could be closed under its own steam, especially when the outlook for the growth portfolio had to be significantly lowered . As a result, the share price has strongly underperformed since my last analysis in May 2023. ...
Bristol-Myers Squibb: A Lost Decade?