Morgan Stanley Downgrades Bristol-Myers On Valuation
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 2016||Credit Suisse||Maintains||Neutral|
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