Bristol-Myers Squibb Holdings: Uncertain Revenue Projections and Fair Valuation

Analyst Evan Seigerman of BMO Capital maintains a Hold rating on Bristol-Myers Squibb with a $47.00 price target. The rating is based on steady growth in prescriptions for Cobenfy, but uncertain revenue projections due to gross-to-net discounts and inventory levels. The company's shares are considered fairly valued, with stable cash flows from existing businesses and slower-than-expected new product launches.

Analyst Evan Seigerman of BMO Capital has maintained a Hold rating on Bristol-Myers Squibb (BMY) with a price target of $47.00. The rating is based on the steady growth in prescriptions for Cobenfy, an oral medication for the treatment of schizophrenia in adults, which was approved by the FDA in September 2024 under the brand name Cobenfy.

The initial uptake of Cobenfy has been encouraging, with sales of $62 million in the first half of 2025. BMY expects sales to be higher in the second half of the year than in the first half. However, the company faces uncertainty in revenue projections due to gross-to-net discounts and inventory levels [1][2].

Despite the increase in weekly and monthly prescriptions for Cobenfy, the numbers are projected to fall short of the consensus revenue estimates for the third quarter of 2025. Additionally, the company's shares are considered fairly valued, with stable cash flows from existing businesses and new product launches progressing at a slower pace than anticipated. These factors collectively contribute to the Hold rating, suggesting that the stock is expected to perform in line with the market [3].

References:
[1] https://finance.yahoo.com/news/does-cobenfy-potential-become-top-135200857.html
[2] https://www.nasdaq.com/articles/does-cobenfy-have-potential-become-top-drug-bmy
[3] https://www.tipranks.com/news/ratings/hold-rating-for-bristol-myers-squibb-amid-uncertain-revenue-projections-and-fair-valuation-ratings