Bristol-Myers (BMY): UBS Turns Bullish as Biotech and Pharma Show Signs of a Recovery

Bristol-Myers Squibb Company (NYSE:BMY) is included among the 15 Best High Yield Stocks to Buy.

On January 7, UBS upgraded Bristol-Myers Squibb Company (NYSE:BMY) to a Buy from Neutral. The firm lifted its price target sharply to $65, from $46. UBS said the biotech and pharma space looks like it’s finally turning a corner after several tough years. In its note, the firm pointed to a more supportive macro backdrop, stronger fundamentals across the industry, rising FDA approvals, better clinical readouts, and a faster pace of M&A. UBS added that confidence in the group could build further in 2026, potentially setting the sector up for outperformance.

Bristol Myers hasn’t been a standout stock recently, down a little over 3% over the last 12 months. Much of that pressure comes from concerns around patent cliffs, including some that are approaching relatively soon. Still, this isn’t new territory for the company. The company has handled similar challenges in the past, and it’s likely to manage the next phase fairly well too, especially given the depth of its product lineup. Oncology remains the company’s biggest strength, but it also has meaningful franchises beyond cancer.

The company is also taking steps to protect its blockbuster brands. Recent approvals, including a subcutaneous version of Opdivo, should help defend the franchise as generic and biosimilar competition heats up. The pipeline remains an important part of the story. Bristol Myers is developing several newer compounds that could become future growth drivers. One of the more interesting ones is BMS-986446, which targets Alzheimer’s disease. It’s a notoriously difficult area for drug development. Over the last 20 years, most Alzheimer’s programs have failed, which is why the field has often been viewed as a graveyard for experimental drugs.

Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharma company focused on discovering, developing, and delivering medicines aimed at treating serious diseases.

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Disclosure: None.