NEW YORK (TheStreet) -- Shares of Bristol-Myers Squibb Co. (BMY) are down 1.09% to $57.97 in pre-market trading on Thursday after the company was downgraded to "equal-weight" from "overweight" at Morgan Stanley.
The firm maintained its $60 price target for the biopharmaceutical company.
Morgan Stanley said it lowered Bristol-Myers Squibb's ratings because the company is now discounting higher odds of success for new drug in development, creating unbalanced risk-reward dynamic.
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"We feel BMY stock is now discounting higher odds of phase 3 squamous lung (CheckMate 017) success in the wake of phase 2 (CheckMate 063) data," said Morgan Stanley analyst David Risinger. "Risk-reward now appears balanced."
Separately, TheStreet Ratings team rates BRISTOL-MYERS SQUIBB CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BRISTOL-MYERS SQUIBB CO (BMY) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."