With a yield of 5.2%, Bristol-Myers Squibb (BMY) is an undervalued biopharmaceutical company that discovers, develops, licenses and sells drugs around the world for use in oncology, hematology, immunology, cardiovascular, neuroscience, to name just a few.
It’s also still one of the top biopharma companies to consider owning for the long term -especially as it trades at a low 7.06x forward earnings, as compared to a sector median of 17.7.
The current valuation, with a reliable dividend to boot, make BMY an attractive opportunity.
BMY also just announced a quarterly dividend of 62 cents per share, which is payable on August 1 to shareholders of record as of July 3.
Plus, BMY just beat forecasts with strong first quarter results and raised full year outlook. For 2025, the company now expects to post earnings of $6.70 to $7, which is up from its prior forecast for $6.55 to $6.85.
Plus, analysts at Cantor Fitzgerald just reiterated its hold rating on the BMY stock with a price target of $55 a share. The firm cited BMY’s Alzheimer’s treatment as a key catalyst. As noted by Investing.com, “Cobenfy’s ADEPT-2 top-line data in Alzheimer’s Disease Psychosis is expected in the second half of 2025, potentially early in that period. This data represents what Cantor Fitzgerald called ‘the highest-impact remaining catalyst for BMY shares this year.’”
Earnings have been solid.
In its most recent quarter, BMY’s EPS OF $1.80 beat estimates by 30 cents. Revenue of $11.2 billion, down 6% year over year, beat by $490 million.
“Our strong execution in the first quarter drove continued momentum across our Growth Portfolio and meaningful progress in the pipeline,” said Christopher Boerner, Ph.D., board chair and chief executive officer, Bristol Myers Squibb, as quoted in its earnings release.
“We are advancing our multi-year plan to become a more agile and efficient company, while strengthening the foundation for top-tier, long-term growth. Our strategy is clear, and our actions are accelerating the delivery of transformational medicines to patients,” they added.
Sincerely,
Ian Cooper
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