UPDATE: Goldman Sachs Reiterates Buy Rating, Lowers PT on Bristol-Myers Squibb Co.
In a report published Wednesday, Goldman Sachs Group reiterated its Buy rating on Bristol-Myers Squibb Co. (NYSE: BMY), but slightly lowered its price target from $40.00 to $39.00.
Goldman Sachs noted, “For 2013, a year of new launches for BMY, we revise our assumptions for spending and modestly lower our 2013 EPS estimate from $1.90 to $1.80, on higher SG&A, versus $1.84 for consensus. Importantly, we leave our longer term estimates unchanged and continue to see BMY as the only company in our sector with the potential to more than double its EPS by the end of the decade. BMY has been a laggard this year owing to the Eliquis delays and the Inhibitex drug failure. We believe execution will be essential to outperformance, the success of which should increase confidence in BMY's long-term growth story. Specifically, we look to the following drivers: (1) Eliquis approval and launch by 1Q13 (already approved in EU with a superior label), (2) the EU launch of Forxiga/Dapa (expect US resubmission by mid-2013), and (3) data on key pipeline drugs anti-PD1 (ASCO in June) and HepC (filing in Japan). We view global Eliquis consensus sales of $350 mn as a low hurdle. For Forxiga, our estimate remains unchanged with only OUS sales in our forecast, however this leaves room for upside on a potential 2014 US launch (could be $1 bn in peak sales). Regarding anti-PD1, BMY will exit 2012 with five P3 trials underway in lung, renal and melanoma, with PD1 in combination with Yervoy to start next year. Additionally, potential for positive P3 results in the Japanese trial for HepC may result in consensus numbers moving up.”
Bristol-Myers Squibb Co. closed on Tuesday at $33.02.
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