What Happened?

Shares of biopharmaceutical company Bristol Myers Squibb (NYSE: BMY) jumped 2.6% in the afternoon session after an analyst at Guggenheim upgraded the company's stock from "Neutral" to "Buy" and set a new price target of $62. 

The positive sentiment was further supported by news that the U.S. Food and Drug Administration (FDA) granted priority review to the company's application for its drug, Opdivo, when used in combination with chemotherapy for treating classical Hodgkin Lymphoma. This action by the FDA indicated an accelerated timeline for potential approval. Not all analysts shared the same bullish view, as Morgan Stanley maintained its "Underweight" rating on the stock, though it did slightly increase its price target from $36 to $37.

After the initial pop the shares cooled down to $52.53, up 2.6% from previous close.

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What Is The Market Telling Us

Bristol-Myers Squibb’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 18 days ago when the stock gained 4.5% on the news that a Politico report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies. The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.

Bristol-Myers Squibb is down 7.5% since the beginning of the year, and at $52.53 per share, it is trading 16.8% below its 52-week high of $63.11 from March 2025. Investors who bought $1,000 worth of Bristol-Myers Squibb’s shares 5 years ago would now be looking at an investment worth $875.85.

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