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Societe Generale cut Bristol Myers Squibb (NYSE:BMY) to hold, stating the drugmaker’s pipeline lacks the potential to mitigate upcoming patent expirations.
“If the new CEO can transform BMS into a sustainable premium growth story, the stock should re-rate substantially from its current P/E24 of 7x,” wrote the investment group in its note.
“However, given the length of the pharma product cycle and the sheer scale of the top-line challenge that BMS faces, SocGen believes that investors need to be extremely patient to enjoy the fruits of any potential re-rating,” it added.