Bristol-Myers Squibb Earns Top 5-Star Rating from Morningstar
The pharmaceutical giant is now considered one of Morningstar's highest-conviction undervalued stocks, citing a robust pipeline and strategic acquisitions.
Bristol-Myers Squibb (BMY) has been upgraded to a prestigious 5-star rating by Morningstar, signaling that the investment research firm now considers the pharmaceutical company to be significantly undervalued at its current price. The rating, Morningstar's highest conviction level, suggests that analysts see substantial upside potential based on a deep dive into the company's fundamental valuation and future prospects.
According to Morningstar's analysis, the bullish outlook is supported by Bristol-Myers Squibb's successful launch of innovative drugs in high-need cardiology and neurology sectors. The firm's "Bulls Say" perspective highlights that despite facing a looming patent cliff for some of its key drugs, BMY's . The company has demonstrated a knack for strategic partnerships and acquisitions, which have fortified its drug portfolio and development pipeline for the long term.
This upgraded rating comes on the heels of several positive developments for the company. Earlier this month, the U.S. Food and Drug Administration (FDA) granted , its antibody treatment for early Alzheimer's disease. This designation is intended to accelerate the development and review process for a drug targeting a condition with immense unmet medical need, representing a significant potential growth driver.
Furthermore, Bristol-Myers Squibb has been actively strengthening its portfolio through strategic acquisitions. The company's recent takeovers of oncology firms Mirati and RayzeBio, along with the neurology-focused firm Karuna, underscore its commitment to replenishing its pipeline with next-generation therapies. These moves are seen by analysts as crucial steps to navigate future patent expirations successfully.
The company's current growth portfolio is already delivering strong results, with sales increasing 17% year-over-year, driven by high demand for key products like Opdivo and Reblozyl. With an upcoming , investors will be watching closely to see if this momentum continues, validating Morningstar's high-conviction bullish stance.