BMYMP - Bristol Myers Squibb: The Comeback Is Unfolding
2024-03-28 16:59:39 ET
Summary
- Bristol Myers Squibb's market capitalization has declined significantly due to the impending expiration of patents for its flagship drugs.
- Bristol Myers Squibb's high debt levels add to the financial strain, requiring strategic measures to survive and maintain its position in the market.
- But I'd not prematurely bury BMY's prospects: Perhaps growth is not exactly what this stock is worth buying for, but the value it holds seems to be more durable.
- The current undervaluation suggests the potential for a further rise in BMY stock, especially considering recent positive developments. BMY remains undervalued by approximately 14.2%, excluding its dividend yield of 4.56%.
- By the end of 2024 or early 2025, I expect a total return of ~20% on the current stock price. This is my price target, which allows me to initiate coverage of BMY with a "Buy" rating.
Intro & Thesis
Bristol Myers Squibb Company ( BMY ) is one of the largest pharmaceutical companies in the world with a market capitalization of $106 billion at the time of writing. However, this figure was much higher just a few months ago, reaching $172.5 billion: