Bristol Myers Squibb Surpasses Analyst Price Target: What’s Next for Investors?
In recent trading, shares of Bristol Myers Squibb Co. (Symbol: BMY) have climbed above the average analyst 12-month target price of $53.55, currently trading at $55.77 per share. As a stock approaches an analyst’s target price, analysts typically face two choices: either downgrade their forecast based on valuation, or adjust their target higher. Their response may also take into account positive business developments that could justify an increased price forecast.
There are 22 different analyst targets within the Zacks coverage universe contributing to that average for Bristol Myers Squibb Co. However, this average serves as a mathematical mean, and individual analyst targets can vary significantly. One analyst projects a price of $70.00, while another has a much lower target of $37.00. The standard deviation among these targets is $7.015.
The rationale behind examining the average price target is to leverage a collective insight, pooling the views of various analysts rather than solely focusing on one expert’s assessment. With BMY now trading above the average target price of $53.55 per share, current investors are prompted to analyze the company’s prospects: Is $53.55 merely a waypoint in pursuit of a higher target, or has the stock’s valuation reached a level that warrants caution and possible profit-taking? Below is a table outlining the latest analyst ratings for Bristol Myers Squibb Co.:
| Recent BMY Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 5 | 5 | 5 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 19 | 17 | 17 | 18 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 1 |
| Average rating: | 2.81 | 2.72 | 2.72 | 2.64 |
The average rating shown above ranges from 1 to 5, where 1 indicates a Strong Buy and 5 signifies a Strong Sell. This report incorporates data sourced from Zacks Investment Research via Quandl.com. For the latest research report on BMY, visit Zacks for free.
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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.
