Bristol-Myers Squibb stock maintains Market Perform rating at Bernstein

Bristol-Myers Squibb (BMY) received a reiterated "Market Perform" rating and $58 price target from Bernstein SocGen Group after discontinuing its Phase 3 Milvexian ACS trial due to efficacy concerns, raising risks for upcoming Milvexian trials in Secondary Stroke Prevention, though the Atrial Fibrillation trial shows potential with a different dosing strategy. Despite this pipeline setback, BMY maintains strong fundamentals, including a 5.32% dividend yield and perceived undervaluation, while also expanding cancer research collaborations and completing a €5 billion bond offering.

Analysis

Bristol-Myers Squibb (BMY) faces increased pipeline risk following the discontinuation of its Phase 3 Milvexian ACS trial due to efficacy concerns, prompting Bernstein SocGen Group to reiterate a "Market Perform" rating with a $58 price target. This setback specifically elevates concerns for the Secondary Stroke Prevention (SSP) trial, which shares a similar dosing regimen to the failed ACS study, while the Atrial Fibrillation (AF) trial, with its more aggressive 100mg BID dosing, is viewed as a potential bright spot aiming for non-inferiority against Eliquis.

Despite the Milvexian challenge, BMY exhibits strong underlying fundamentals, including a 5.32% dividend yield maintained for 55 consecutive years, and is considered undervalued by InvestingPro at its current trading price of $46.65. The company has also strategically expanded its collaboration with Sarah Cannon Research Institute for cancer therapy development and successfully priced a €5 billion senior unsecured note offering.

Upcoming catalysts include results from the two remaining Milvexian Phase 3 trials in 2026 and new efficacy data for Camzyos, expected at the American Heart Association's Scientific Sessions in 2025. These developments highlight BMY's diversified pipeline efforts and financial stability, which could mitigate the impact of the recent trial failure.

Key Decisions for Investors

• Monitor the progress and results of the remaining Milvexian Phase 3 trials in 2026, especially the Atrial Fibrillation study's competitive profile against Eliquis, as these will be key determinants of future pipeline value
• Evaluate BMY's long-term value proposition, considering its robust 5.32% dividend yield, perceived undervaluation, and strategic investments in oncology, which may provide resilience against recent clinical setbacks
• Assess the implications of the €5 billion bond offering on the company's capital structure and its capacity to fund future growth initiatives, alongside the potential impact of upcoming Camzyos data on its cardiovascular portfolio