Bristol-Myers Squibb: Declines Have Gone Too Far
Summary
- Bristol-Myers Squibb's sales are stabilizing, with Q2 net sales up 1% YoY and growth portfolio drugs like Camzyos and Breyanzi showing strong momentum.
- Despite margin compression and profitability concerns, operating cash flow surged 70% YoY, supporting continued capital returns to shareholders.
- The company raised its full-year top-line guidance, signaling less severe declines than feared, though profitability remains pressured.
- With the P/S ratio near three-year lows and at a 45% discount to the sector, I see the stock as materially undervalued and rate it a buy.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.