FOR THE RECORD
NEW YORK, Oct 20 (Reuters) - Merrill Lynch said on Wednesday it cut its rating for drug giant Bristol-Myers Squibb Co. (NYSE:BMY) to near-term accumulate from buy, while PaineWebber raised the company's EPS estimates for 2000 and its price target for the stock.
Merrill Lynch said:
-- Price target unchanged at $85 to $86 per share.
-- Long-term rating remains buy.
-- Said ''Appreciation may moderate, however, moving into next year as the company approaches a scheduled court date, Feb. 11, for a Taxol patent dispute. We currently believe that Bristol, which holds a valid patent on Taxol infusion, will win this dispute.''
-- ''Going forward we find it difficult to believe that its multiple, relative to the group, will rise any higher than it already has. Therefore price appreciation going forward should be driven by earnings growth and less so by multiple expansion.''
PaineWebber said:
-- Raised 2000 EPS estimates for Bristol-Myers Squibb to $2.34 from $2.32.
-- Raised its target to $82 from $77.
-- Said solid quarter in-line with its expectations. ''Positive news flow going forward will continue to support the stock with 5 key events occurring before year-end,'' including Vanlev data to be presented at AHA, launching of antibiotic Tequin, UFT for cancer 4Q99, Glucophage once-daily and Vanlev filing with FDA in 4Q99.
Bristol Myers shares were off 2-1/4 at 73-7/8 on the New York Stock Exchange at midmorning. |
