Jefferies Upgrades Bristol Myers Squibb to ‘buy’ on drug Cobenfy

Investing.com -- Jefferies upgraded Bristol-Myers Squibb Company (NYSE:BMY ) to "buy" from "hold" and raised its price target by $7 to $70, amid an improved confidence in the company’s product pipeline, disciplined spending, and greater clarity on regulatory risks.

The brokerage highlighted the potential of BMY’s schizophrenia drug, Cobenfy, forecasting it to become a $10 billion-plus product.

Jefferies noted positive momentum from recent launches, including Cobenfy’s label hitting best-case scenarios, and projected stronger-than-expected sales for 2024 and 2025.

It also expressed optimism about Cobenfy’s Alzheimer’s psychosis trials, assigning a 70% probability of success for a key Phase 3 study, and pointed to the drug’s potential efficacy in bipolar disorder, with trials expected to begin in mid-2025.

Bristol Myers remains exposed to loss of exclusivity risks for over 70% of its revenues, but Jefferies said the company’s improved visibility on financial performance and promising pipeline justified the upgrade.

Source: Investing.com