Bristol-Myers Squibb Company (BMY): A Bull Case Theory

We came across a bullish thesis on Bristol-Myers Squibb Company (BMY) on Disruptive analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on BMY. Bristol-Myers Squibb Company (BMY)’s share was trading at $56.29 as of Jan 17^th. BMY’s trailing and forward P/E were 22.79 and 7.93 respectively according to Yahoo Finance.

Bristol Myers Squibb (BMY) is one such company poised for growth, as it enters a crucial data-rich period with readouts from 40 clinical trials. By 2025, five new products are expected to contribute at least 50% of its revenue, marking the beginning of rapid growth. A standout in BMY’s pipeline is Cobenfy, a drug for schizophrenia that has already outperformed other branded schizophrenia treatments. Its positive reception suggests strong commercial potential. In addition to Cobenfy, BMY is hopeful about its trials for Alzheimer’s disease psychosis. While Cobenfy may not cure Alzheimer’s, it has already shown promise in alleviating symptoms such as delusions, hallucinations, and paranoia, which could position it as a key treatment in a rapidly growing market. Alzheimer’s disease, with its aging patient population, represents an enormous opportunity for pharmaceutical companies, and BMY is well-positioned to capitalize on this.

Despite these promising developments, the market has yet to fully price in BMY’s pipeline potential. The company’s strategic investments in these next-generation therapies have largely gone unnoticed, presenting an arbitrage opportunity for savvy investors. With rapid growth expected from these new therapies and the strong possibility of further positive clinical data, BMY offers significant upside for those willing to take advantage of the market’s current mispricing.

Bristol-Myers Squibb Company (BMY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held BMY at the end of the third quarter which was 61 in the previous quarter. While we acknowledge the risk and potential of BMY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BMY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.