BMY - Bristol-Myers Squibb: Market Pessimism Won't Last Forever

2024-04-17 11:30:43 ET

Summary

• Bristol-Myers Squibb Company stock continues to struggle at a four-year low.
• Revlimid's revenue decline and increased competition from generics pose significant challenges for the company.
• Bristol-Myers Squibb needs to convince investors that its recent M&A can improve performance significantly.
• The resurgence in long-term yields could dampen further business development growth prospects this year.
• Selling pressure on Bristol-Myers has abated, providing solid opportunities for long-term investors to accumulate.

Bristol-Myers Squibb Company ( BMY ) is a wide-moat biopharma company with a best-in-class "A+" profitability grade. However, BMY's continued struggle at a four-year low speaks volumes of the tremendous lack of confidence in the market, even as Bristol-Myers Squibb wants us to believe it has what it takes to successfully manage its LOE and post-2026 transition. Notwithstanding the M&A business development activities aimed at restoring its growth trajectory, investors remain unconvinced. I updated BMY investors in late January 2024 that the stock seems to have bottomed out late last year. That thesis remains intact, even though the downside volatility experienced in April 2024 threatened to scupper its recent recovery....

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