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Morgan Stanley Downgrades Bristol-Myers On Valuation

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In a note out Thursday, analyst David Risinger of Morgan Stanley lowered his rating on Bristol-Myers Squibb Co (NYSE: BMY) from Overweight to Equal-Weight, but maintained his $60 price objective.

The change is attributed to the recent rally in the shares, with Bristol-Myers having rallied 17 percent since October 2. With the stock now trading just below the $60 price target (it closed Wednesday at $58.61), he feels an Equal-weight rating is now appropriate.

Morgan Stanley's Investment Thesis:

  • We expect rising pipeline enthusiasm to drive stock outperformance.
  • BMY should trade at a significant premium to group P/E due to strong pipeline.
  • BMY stock is likely to be volatile (positive/negative) on immuno-oncology (nivo, or PD-1) newsflow.

Shares were trading slightly lower in the premarket at $58.30, down 0.53 percent.

Latest Ratings for BMY

Oct 2016Credit SuisseMaintainsNeutral
Sep 2016CitigroupMaintainsBuy
Sep 2016JefferiesMaintainsHold

View More Analyst Ratings for BMY
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Posted-In: David Risinger Morgan StanleyAnalyst Color Downgrades Analyst Ratings


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