Goldman Sachs raised its target price for Bristol-Myers Squibb (BMY.US) to $57, emphasizing its risk-reward balance

The Zhitong Finance App learned that Goldman Sachs raised the target price of Bristol-Myers Squibb (BMY.US) from $51 to $57, keeping the rating “neutral.” The bank said that Bristol-Myers Squibb shows a careful balance between risk and return: the dividend rate is 4.6%, and the dividend rate is about 85%. Even if the pressure increases, there is still some room to support dividends.

Currently, the patent cliff risk has become a market consensus. In order to meet the challenges, management strengthened the R&D pipeline through a series of acquisitions and spread risk to more target markets — although this strategy is not a “panacea”, it has consolidated the company's resilience to risk at key points, enhanced strategic depth through diversified layout, and provided more solid support for crossing the industry cycle.

Bristol-Myers Squibb focuses on the development and commercialization of cardiovascular, immune and oncology drugs, and its product line is divided into two categories:

- “Growth” drugs are still protected by several years of patents;

- “Traditional” products are on the verge of or have lost their patent monopoly.

Both camps have major players: the growth camp is led by the anti-cancer drug Opdivo, and the traditional camp is supported by Eliquis, although the latter faces increasing competitive pressure. Recently, the heavy burden of incremental growth falls mainly on growth drugs — in the third quarter, sales in this sector increased 18% year over year to reach US$6.9 billion, which not only offset the 12% year-on-year decline in traditional products, but also boosted the company's total revenue growth of 3% to US$12.2 billion.

According to information, Bristol-Myers Squibb continues to position itself as a global biopharmaceutical company dedicated to discovering, developing and delivering innovative drugs to serve critically ill patients.