UPDATE: Bank of America Merrill Lynch Raises PT to $36 for Bristol-Myers Squibb
Bank of America Merrill Lynch reiterates a Neutral rating on Bristol-Myers Squibb (NYSE: BMY) and increase its price target from $34 to $36.
Bank of America Merrill Lynch notes, “BMY's hepatitis C (HCV) and anti-PD-1 (BMS-936558) pipeline assets are two interesting and potentially highly valuable opportunities. Given the recent data presented on anti-PD-1 and our expectations for the HCV franchise, we are adding revenues to our model for these candidates, beginning in 2015 for both HCV (when daclatasvir could potentially launch) and PD-1, each reaching $500mn in ~5 years, a conservative estimate vs. the potential for these drugs, in our view. Following these changes to our model, we are increasing our PO to $36 (from $34). We assume no incremental operating expenses at this stage, as we assume BMY's current virology/oncology sales forces could be used to market the products. We remain constructive on BMY and see it as the best positioned of the US majors to grow rapidly if the pipeline delivers, but are sticking with our Neutral based on BMY's higher multiple relative to the group.”
Bristol-Myers Squibb closed at $34.74 on Wednesday.
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