NEW YORK (TheStreet) -- Shares of Bristol-Myers Squibb (BMY) - Get Report were increasing in late-afternoon trading on Tuesday ahead of the company's fiscal 2016 third-quarter results, due out before Thursday's market open.
Analysts surveyed by FactSet are looking for adjusted earnings of 65 cents per share and $4.79 billion in revenue.
For the year-ago period, the New York City-based pharmaceutical company posted earnings of 39 cents per diluted share on revenue of $4.07 billion.
BMO Capital Markets said in a note today that it sees some risk for Bristol-Myers if California's Proposition 61 were to pass. The proposed legislation aims to put a cap on drug prices.
The firm has a "hold" rating and $56 price target on the company, according to FactSet.
Companies such as Bristol-Myers that are less geographically and therapeutically diversified may face major headwinds if the legislation is enacted, the firm noted.
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The team rates Bristol-Myers as a Buy with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, compelling growth in net income and good cash flow from operations. The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: BMY