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Bristol Myers Upgraded to “Buy” at Jefferies; Possible Acquisition Target (BMY)

Pharmaceuticals maker Bristol Myers Squibb Co. ( BMY ) on Monday caught a big upgrade from analysts at Jefferies & Co.

The firm said it upgraded BMY to "Buy" while raising its price target from $27 to $35. That new target suggests a 15% upside to the stock's Friday closing price of $30.53.

A Jefferies analyst commented, "Two very positive things have happened. Firstly Yervoy has got off to a spectacular launch during Q2'11. Secondly, the competitive landscape for SPAF has shifted dramatically in favour of Eliquis. We expect underlying revenue and EPS growth will rapidly take off mid-term. This is likely to make the company a prime target for acquisition during the peak of its patent cliff in 2012. As a result we have upgraded our recommendation to Buy."

Bristol Myers shares rose 22 cents, or +0.7%, in premarket trading Monday.

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 4.32% dividend yield, based on Friday's closing stock price of $30.53.

Bristol Myers Squibb Co. ( BMY ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.8 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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