BMY - Is Bristol Myers Squibb A Buy At These Bottom Levels?
2024-04-22 09:30:00 ET
Summary
- BMY has been upgraded to a Buy, with the stock already yielding 5.02% at the time of writing and the Seeking Alpha Quant still grading its dividend safety at B-.
- Combined with the promising profitability metrics and its overly discounted valuations, it now offers an attractive risk-reward ratio for value and dividend-oriented investors with long-term trajectory.
- We expect BMY to deliver a mixed FQ1'24 earnings call, attributed to the one-time IPR&D and milestones expenses from the recently closed Karuna, Rayzebio, and Mirati acquisitions.
- With a relatively healthy balance sheet and robust EBITDA generation, we believe its leverage ratio remains reasonable compared to many of its peers.
- Combined with the accretive pipelines with robust market potential, we believe that BMY's recent M&A activities hold great promises indeed.
We previously discussed Bristol Myers Squibb Company ( BMY ) in December 2023, discussing why our previous Hold rating had proven to be prudent, with the stock losing -12.35% of its value since then.
Combined with the sustained top-line erosion from Revlimid's LOE, upcoming Eliquis LOE by 2026, and the potential balance sheet deterioration after the aggressive M&A activities, we believed that it might be more prudent to observe the stock's movement for a little longer....
Is Bristol Myers Squibb A Buy At These Bottom Levels?