11:35 AM EST, 12/15/2025 (MT Newswires) -- Bristol-Myers Squibb ( BMY ) offers a favorable risk/reward heading into 2026, supported by four to six pipeline programs that could provide key de-risking catalysts, BofA Securities said in a Monday note.

The brokerage said the company faces an early stage of a multi-year loss of exclusivity period and some of the company's top products in hematology and oncology are facing patent expirations. While this may pressure near-term earnings, the firm sees the LOE-adjusted trough earnings per share as a floor for the stock and views it as a buying opportunity.

The investment firm expects Bristol-Myers to post a high-single-digit revenue decline in 2026, in line with consensus estimates, reflecting LOE headwinds partly offset by growth from other brands. Operating expenses are expected to decline modestly due to a $1 billion cost-savings initiative and limiting the year-on-year EPS drop to roughly 10%.

BofA highlighted key pipeline catalysts for 2026, including Milvexian for atrial fibrillation, Admilparant for idiopathic pulmonary fibrosis, CELMoDs in relapsed/refractory multiple myeloma, Cobenfy in Alzheimer's psychosis, and Pumitamig in triple-negative breast cancer.

Positive readouts from these programs could drive upside beyond the projected LOE-related trough EPS, according to the note.

The firm said Bristol-Myers' combination of a sector-low valuation, pipeline depth and potential near-term catalysts makes the stock an attractive entry point ahead of a return to growth in 2029 and beyond.

BofA upgraded its rating on the company to buy from neutral and raised its price objective to $61 from $52.

Shares of Bristol-Myers Squibb ( BMY ) were up 3% in recent trading.

Price: 53.98, Change: +1.57, Percent Change: +2.99