Bristol Myers Squibb (BMY) just gave investors a strong quarter and a bigger outlook.
Morgan Stanley read the same report and kept its rating exactly where it was. (The source of much of this article is a Morgan Stanley report shared with me.) Morgan Stanley sees the stock falling to $40, well below the $65.31 it closed at on July 31
That decision says something useful about how Wall Street values a drugmaker that is doing well today but faces a harder 2027 and 2028. For anyone holding the stock or watching it after a strong run, the reason behind that caution deserves a closer look. What Bristol Myers reported in the second quarter The company delivered what Wall Street calls a beat and raise.
A beat and raise means a company tops expectations for the quarter and then lifts its forecast for the rest of the year. Bristol Myers posted second-quarter adjusted earnings of $2.04 a share on revenue of $12.97 billion, topping analyst estimates of $1.60 and about $11.86 billion, according to Quiver Quant. Management raised full-year 2026 revenue forecast to between $49.0 billion and $50.0 billion.