Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 24 Sep, 25 | BMY | Buy | USD 44.91 | USD 47.0 | USD 50.0 | 7 days | Closed |
8.17%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis, an oral inhibitor for reduction in risk of stroke/systemic embolism in NVAF, and for the treatment of DVT/PE; Opdivo for anti-cancer indications; Pomalyst/Imnovid indicated for patients with multiple myeloma; Orencia for adult patients with active RA and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia in adult patients with beta thalassemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma; Onureg for the treatment of adult patients with AML; Inrebic, an oral kinase inhibitor indicated for the treatment of myelofibrosis; Camzyos for the treatment of adults with symptomatic obstructive HCM to enhance functional capacity and symptoms; Sotyktu for the treatment of adults with moderate-to-severe plaque psoriasis; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane, a protein-bound chemotherapy product. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. The company was founded in 1887 and is headquartered in New York, New York.
Operating Expense Efficiency: Non-GAAP operating expenses decreased from USD 4.2B in Q2 FY24 to USD 4.0B in Q2 FY25, reflecting a USD 0.2B cost reduction
Growth Portfolio Expansion: Net sales increased from USD 5.6B in Q2 FY24 to USD 6.6B in Q2 FY25, representing +18% year-over-year growth
Cash Flow Weakness: Cash flow from operations dropped from USD 5.6B in Q2 FY24 to USD 3.9B in Q2 FY25, a USD 1.7B decrease year-over-year
Earnings Decline: Non-GAAP EPS fell from USD 2.07 in Q2 FY24 to USD 1.46 in Q2 FY25, marking a 29% year-over-year decline
Bristol Myers Squibb faces significant risk from the accelerating decline of its legacy portfolio and heightened exposure to acquired IPR&D charges, which may pressure near-term earnings and cash generation despite growth portfolio momentum
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 44.91 | 40.0 | 47.0 | 50.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Performance Overview: In the second quarter of fiscal year 2025, Bristol Myers Squibb (BMS) delivered total net revenues of USD 12.3 billion, reflecting a marginal increase of 1% year-over-year. While overall revenue growth remained muted, the company’s growth portfolio delivered a robust 18% year-over-year expansion, underscoring the success of its newer product launches and pipeline execution.
Earnings and Profitability: On a GAAP basis, diluted earnings per share (EPS) declined to USD 0.64 from USD 0.83 in Q2 FY24. On a non-GAAP basis, EPS decreased to USD 1.46 compared to USD 2.07 in the prior year, largely due to higher acquired IPR&D charges and lower amortization of acquired intangibles. Gross margin narrowed slightly to 72.6% from 75.6% on a non-GAAP basis, indicating increased cost pressures.
Operating Expenses and Investments: Operating expenses improved modestly, with non-GAAP expenses declining to USD 4.0 billion in Q2 FY25 compared with USD 4.2 billion in the prior year. However, GAAP operating expenses were lower at USD 4.3 billion versus USD 4.8 billion, reflecting disciplined cost management while still maintaining investments in R&D and commercialization efforts.
Pipeline and Strategic Execution: The company continued to advance its clinical and regulatory pipeline, achieving multiple milestones across oncology, immunology, and neuroscience. Notably, partnerships such as the alliance with BioNTech to co-develop BNT327 demonstrate BMS’s commitment to strengthening its growth portfolio. Additionally, the formation of an Immunology NewCo with Bain Capital reflects a strategic approach to externalizing select assets for focused innovation.
Balance Sheet and Liquidity: As of Q2 FY25, BMS maintained total cash of approximately USD 13.9 billion against total debt of USD 49.2 billion. The company reaffirmed its intent to reduce debt by USD 10 billion by Q2 2026, with USD 6.5 billion already repaid as of the reporting period. Cash flow from operations stood at USD 3.9 billion in Q2 FY25, down from USD 5.6 billion in Q2 FY24.
Shareholder Returns and Guidance: The company remains committed to returning capital to shareholders, with USD 5 billion in authorized share repurchase capacity and continued dividend commitments. Updated FY25 guidance raised revenue expectations to USD 46.5–USD 47.5 billion, while non-GAAP EPS guidance was adjusted downward to USD 6.35–USD 6.65, primarily due to acquired IPR&D charges.
Commercial and Portfolio Transition: Revenue composition continued to shift, with growth portfolio products accounting for USD 6.6 billion compared with USD 5.6 billion in Q2 FY24, marking an 18% rise. In contrast, legacy portfolio revenues declined to USD 5.7 billion from USD 6.6 billion a year earlier, reflecting an ongoing transition away from mature products towards innovative therapies.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Bristol Myers Squibb (NYSE: BMY) at the closing market price of USD 44.91, as on Sep 23, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Drug Manufacturers - General
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BMY Bristol-Myers Squibb Company |
-0.46 0.85% | 53.77 | 13.27 | 6.99 | 2.31 | 3.66 | 3.06 | 7.03 |
| LLY Eli Lilly and Company |
-14.22 1.35% | 1040.07 | 78.14 | 31.95 | 16.34 | 45.83 | 16.65 | 54.36 |
| JNJ Johnson & Johnson |
1.73 0.83% | 211.03 | 29.17 | 14.33 | 3.74 | 5.18 | 3.80 | 15.22 |
| ABBV AbbVie Inc |
1.90 0.85% | 225.56 | 61.52 | 14.86 | 5.62 | 51.62 | 6.76 | 20.58 |
| MRK Merck & Company Inc |
0.85 0.86% | 99.12 | 59.83 | 12.33 | 4.50 | 6.47 | 4.94 | 23.79 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 23,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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