Bristol-Myers Squibb (BMY)

Index:

S&P 100

$ 55.77
   
  • Change Today:
    $3.11
  • 52 Week High: $56.20
  • 52 Week Low: $39.66
  • Currency: US Dollars
  • Shares Issued: 1,998.00m
  • Volume: 18,740,372
  • Market Cap: $111,428m
  • RiskGrade: 106

Jefferies cuts AstraZeneca target price

By Alexander Bueso

Date: Tuesday 01 Aug 2017

LONDON (ShareCast) - (ShareCast News) - Analysts at Jefferies cut their target price for AstraZeneca's shares following various updates from the company, especially as regards its MYSTIC clinical trial for its anti-lung cancer tumour treatment Imfinzi.
The broker cut its target from 4,900p to 4,400p, telling clients it continued to believe it was "highly unlikely" that either the company's mono or combo arms for Imfinzi would meet statistical significance as compared to chemotherapy on rates of progression-free-survival.

There also continued to be "limited visibility" on the firm's core earnings per share, with 'one-off' externalisation and OOI contributions still driving roughly between 20% and 40% of the broker's estimates for operating profits in the next few years.

In April 2017, Jefferies downgraded the stock, due to its concerns around MYSTIC and the company's "uncomfortable" level of dependence on asset sales and outlicensing in order to prop up its ongoing operations and dividend payout.

Furthermore, Astra's deal with Merck to develop and market its Lynparza treatment for multiple types of cancer would hit the company's profitability.

On the upside, its PACIFIC and FLAURA trials for Imfinzi and Tagrisso should drive strong franchises, according to the broker.

To take note of, Jefferies also estimated that Astra's dividend was unlikely to be covered by underlying free cash flows until 2021.

Jefferies said it preferred GlaxoSmithKline for yield and Bristol-Myers Squibb as an immuno-oncology play.

Novartis and Eli Lilly were best as lower-risk EPS plays, the broker added.

The analysts kept their recommendation on AstraZeneca shares at a 'hold'.

"We remain concerned over the overall shape of the company's earnings and cash flows. Furthermore, we find valuation and forecasting very difficult on this name."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BMY Market Data

Currency US Dollars
Share Price $ 55.77
Change Today $ 3.11
% Change 5.91 %
52 Week High $56.20
52 Week Low $39.66
Volume 18,740,372
Shares Issued 1,998.00m
Market Cap $111,428m
RiskGrade 106

What The Brokers Say

Strong Buy 3
Buy 3
Neutral 18
Sell 1
Strong Sell 0
Total 25
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Trades for 31-Oct-2024

Time Volume / Share Price
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15:59 1,100 @ $55.75
15:59 184 @ $55.75
15:59 271 @ $55.77

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