Immediately after the opening bell, you purchase 300 shares of Bristol-Myers Squibb stock at approximately $56.50. Following this transaction, the Jim Cramer Charitable Trust will own 1,200 shares of BMY stock, increasing its weight in the portfolio from approximately 1.4% to approximately 1.9%. The pervasiveness of Wall Street’s evil may have finally caught up with it. The S&P Short Range Oscillator, our go-to momentum indicator, became oversold after Friday’s mixed trading, dropping to -4.1%. When the oscillator becomes oversold, our discipline tells us it’s time to opportunistically buy stocks in blue-chip companies. In Thursday’s edition of Home Trench, we noted that Bristol-Myers Squibb’s recent drop to the mid-$50s looks like an opportunity. Especially since it means the company’s stock has given back about half of the gains from failed schizophrenia trials at AbbVie’s rival. medicine. Jefferies analysts share their long-term bullish view on Bristol-Myers. Analysts upgraded the investment rating to buy from hold on Monday and raised their price target to $70 from $63. Jeffries cited three main reasons for the call, which imply a 25% upside for the stock from its current price. Analysts believe the company’s best-in-class schizophrenia drug Cobenfi is on track to become a blockbuster. They currently model peak sales for the drug at $11 billion, far higher than the current Wall Street consensus of $6 billion. Jeffries is also optimistic about Bristol-Myers’ pipeline. One drug highlighted by analysts was Milbexian, a blood-thinning drug currently in three late-stage trials for atrial fibrillation, acute coronary syndrome, and secondary stroke prevention. There is. Jefferies’ third bullish point was Bristol-Myers’ ability to weather the upcoming patent cliff with improved income statement visibility and increased sales, especially for Cobenfi. We agree with all three reasons and think the stock is too cheap, with a dividend yield of 4.4% and less than 8 times estimated 2025 earnings per share. We first bought Bristol-Myers in late November and most recently added to our position on December 4th. (Jim Cramer Charitable Trust is a long BMY. See here for a complete list of stocks.) As a subscriber to CNBC Investing Club with Jim, you’ll receive trade alerts before Cramer, Jim makes a trade . After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
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We’re building on our position in a stock that just received a lot of support from Wall Street.
By Reid Novak
