Wall Street Analysts' Target Price for Bristol-Myers Squibb Stock: A Mixed Outlook

January 31, 2025 — 10:37 am EST Written by Aditya Sarawgi

Bristol-Myers Squibb Company stands as a biopharmaceutical powerhouse developing treatments for cancer, inflammatory, immunologic, cardiovascular and fibrotic diseases. With operations spanning the Americas, Europe, and Indo-Pacific, this Princeton-based giant has shown interesting market movements lately.

I’ve noticed BMY has slightly underperformed compared to the S&P 500 over the past year. Yet, in 2025 so far, BMY has jumped 4.6% on a YTD basis, outpacing SPX’s more modest 2.6% gains. Even more telling, Bristol-Myers has dramatically outperformed the First Trust Nasdaq Pharmaceuticals ETF over the past 52 weeks.

BMY’s stock surged after their most recent earnings release on October 31. Their total revenues increased by 8.4% year-over-year to $11.9 billion, beating market expectations by over 5%. While adjusted net earnings fell 11.8% to approximately $3.7 billion, their adjusted EPS of $1.80 crushed estimates by a staggering 20.8%. I can’t help but wonder if this performance is sustainable or just a temporary boost.

Looking ahead, BMY will announce fiscal 2024 results soon, and analysts predict a concerning 87.8% year-over-year earnings decline to $0.92 per share. This dramatic drop seems alarming, though the company’s track record of exceeding earnings estimates in the past four quarters offers some reassurance.

Among the 25 analysts covering BMY, the consensus rating has become more bullish than two months ago. Currently, seven give “Strong Buy” ratings, 17 say “Hold,” and one remains at “Strong Sell.” On January 8, Truist Securities analyst Robyn Karnauskas maintained their rating while raising the price target to $65, suggesting a 9.9% premium to current levels.

BMY’s mean price target of $60.09 represents just a 1.6% premium, though the street-high target of $73 points to a potential 23.4% upside. Such divergent targets make me question whether analysts truly understand the company’s growth trajectory or if they’re simply hedging their bets during uncertain market conditions.

The stock’s recent performance against broader market indicators presents an interesting case for investors weighing potential pharmaceutical plays in their portfolios. But with that dramatic projected earnings decline, I’m skeptical about whether the current positive momentum can continue without more concrete signs of sustainable growth.