Morgan Stanley Maintains a Sell Rating on Bristol-Myers Squibb (BMY), Sets a $34 PT

Bristol-Myers Squibb Company (NYSE:BMY) is one of the best cheap stocks under $50 to buy now. In a report released on July 13, Terence Flynn from Morgan Stanley maintained a Sell rating on Bristol-Myers Squibb Company (NYSE:BMY), setting a price target of $34.00.

The analyst based the rating on the company’s current market standing and future prospects, reasoning that a key point of concern is Bristol-Myers Squibb Company’s (NYSE:BMY) reliance on Cobenfy.

Cobenfy is an approved drug for schizophrenia and is now being tested for Alzheimer’s Disease Psychosis (ADP). However, the analyst stated that while ADP has considerable potential market with no approved therapies available, it is uncertain whether Cobenfy will succeed in the domain, as it depends on the results of the ongoing Phase 3 trials.

Flynn also reasoned that the initial uptake for the drug has been slower than expected for the treatment of schizophrenia, which may falter investor confidence in Cobenfy’s potential to drive positive future revenue growth.

Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.

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Disclosure: None. This article is originally published at Insider Monkey.