BMY - Bristol-Myers Squibb: Time To Double Down
2024-06-28 10:22:38 ET
Summary
- BMY stock has seen a rapid correction, but my analysis suggests it's a buy the dip opportunity. Read on.
- Despite challenges with patent expirations, BMY's product line and pipeline development show promise for future growth.
- With an implied P/E multiple of 6.1x for FY2025, BMY appears undervalued, offering a potential 64% upside by the end of 2025.
- BMY offers an attractive dividend yield of about 5.69% and has a $5.0 billion stock repurchase program, which could boost investor returns.
- I think that from a risk/reward perspective, it may be a good decision to double down on BMY stock right here.
Intro & Thesis
I initiated coverage of Bristol-Myers Squibb Company ( BMY ) stock about 3 months ago, in March 2024 , with a "Buy" rating. At the time, I cited that the company's growth potential wasn't exactly what it was worth buying for, but the value it possessed seemed more durable. My calculations at the time led me to conclude that even under conservative assumptions, BMY stock could be undervalued by the market by about 14%, which, combined with a good dividend yield of over 5%, represented a good opportunity for income-seeking investors. Unfortunately, my thesis has so far failed to materialize as the stock has continued to test new lows:
Seeking Alpha, my coverage of BMY stock
