Pharmaceuticals maker Bristol Myers Squibb Co. ( BMY ) on Thursday caught a big upgrade from analysts at Goldman Sachs.
The firm said it boosted its rating on BMY from "Neutral" to "Buy" with a $37 price target. That target suggests an expected 20% upside to the stock's Wednesday closing price of $30.95.
Goldman made the call amid a broad upgrade of the Largecap Pharma sector to "Attractive." The firm commented that "high margin contribution from new drugs (estimated 69% of sales by 2016) should more than offset nearterm margin erosion from upcoming patent expirations." It also sees good earnings visibility from BMY post 2013 and expects consensus earnings estimates for the company to be raised within the next year.
Bristol Myers shares fell 38 cents, or -1.2%, in premarket trading Thursday.
The Bottom Line
We have been recommending shares of Bristol Myers ( BMY ) since Aug.25, 2009, when the stock was trading at $22.58. The company has a 4.26% dividend yield, based on last night's closing stock price of $30.95.
Bristol Myers Squibb Co. ( BMY ) is a "Highly Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.8 out of 5 stars.
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