Bristol-Myers Squibb is trading at an attractive valuation.
The Celgene acquisition might not be fully reflected in the stock price.
Management is building a solid track record of increasing the dividends.
Bristol-Myers Squibb (BMY) is transforming itself into a more powerful biopharmaceutical company through the acquisition of Celgene (CELG). Although the stock gained about 21% since the merger was announced in January 2019, the valuation is still lower than many of the company's peers and the Major Drug Manufacturing industry as a whole.
It appears that the Celgene acquisition might not be fully reflected in the stock price. Investors could be skeptical of how large an impact the acquisition will be for Bristol-Myers. The skepticism could also be the result of not having faith in the combined companies' pipeline. Even without pipeline clarity, the largest sellers, Revlimid, Opdivo, and Eliquis are likely to have a strong positive impact on the company's sales over the next few years.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
Disclaimer:This and other personal blog posts are not reviewed, monitored or endorsed by
TalkMarkets. The content is solely the view of the author and TalkMarkets is not
responsible for the content of this post in any way. Our curated content which is
handpicked by our editorial team may be viewed here.
Comments
Log in or sign up to join the conversation.