September 5, 2017

BMY – Market expectations are for flat Uniform ROA, but management’s confidence about the potential of their -227 and -568 programs implies this may be too bearish


  • Bristol-Myers Squibb Company (BMY:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 17.4x Uniform P/E. At these levels, the market has fairly muted expectations for the firm, which may be too bearish, given management’s confidence about the potential of their -227 and -568 programs
  • Specifically, management is confident about the potential of their CheckMate -227 cancer program, and the value of the program’s dosing flexibility. Additionally, they are confident about the potential of their CheckMate -568 program, and in their expectation to begin accruals for that trial in September. As such, markets are not pricing in potential tailwinds for the firm, and equity upside may be warranted

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