Expert opinion: ‘Bristol-Myers is a buy’

Shares of Bristol-Myers Squibb Co (NYSE: BMY) are up more than 3.0% on Monday after the pharmaceutical company said it will repurchase $5.0 billion worth of its stock in Q1.

CEO says business development is a priority

Interestingly, however, CEO Giovanni Caforio says business development is a priority for Bristol-Myers. In his interview with CNBC, he said:

According to Caforio, Bristol-Myers will be on the lookout for companies that match its area of expertise and are valued reasonably.

Also on Monday, Bristol-Myers gave its guidance for the full year that came in line with analysts’ estimates. It forecasts cash flow to hit at least $45 billion by 2024. In the latest reported quarter, Bristol-Myers noted a 16% YoY decline in per-share earnings.

Jim Lebenthal’s bull case for Bristol-Myers

Shares of Bristol-Myers remained flat last year, but Cerity Partners’ Jim Lebenthal says it’s a good buy for 2022. On CNBC’s “Halftime Report”, he said:

The NYSE-listed company said it will launch three new products in 2022 – relatimab/nivolumab, mavacamten, deucravacitinib). It expects Revlimid sales to hit about $10 billion this year.

At eight times earnings with a 3.5% dividend yield, Lebenthal concluded, the stock is a buy at current levels.