JPMorgan has identified Bristol Myers as a top pick in the healthcare sector, citing the pharmaceutical company’s strategic position amidst a market rotation favoring more defensive stocks due to broader macroeconomic uncertainties. Bristol Myers' stock has gained approximately 4% year to date, supported by the strength of the healthcare sector which has become the best-performing S&P 500 index with nearly a 5% increase so far this year.
According to JPMorgan analysts, Bristol Myers is well-positioned for further growth as its promising oral drug, Cobenfy, expands its reach. Designed to aid adults with schizophrenia, Cobenfy is projected to achieve peak annual sales of $10 billion or more, marking a significant potential revenue boost for the company. Despite its current success, analysts believe Bristol Myers shares are trading at a steep discount when compared to its industry peers.
Bristol Myers has been a standout performer this year despite challenging market conditions. Although its stock experienced a slight pullback this past week, attributed to a temporary cooling off of the rotation into defensive stocks, it remains a key biopharma pick for JPMorgan. The company is expected to benefit from several additional pipeline readouts pending this year and in 2026, potentially enhancing its market position.
"There are two big Cobenfy readouts expected later this year that serve as catalyst events. If successful, we'll see analysts raise their peak sales forecasts," said Jeff Marks, director of portfolio analysis for the Club.
In addition to its robust pipeline, Bristol Myers is supported by prominent investors like Jim Cramer’s Charitable Trust, which holds a long position in BMY. Cramer adheres to strict trading protocols, waiting 72 hours after issuing a trade alert before executing a trade if he has discussed the stock on CNBC TV, and waiting 45 minutes after sending a trade alert before making transactions within his charitable trust’s portfolio.
JPMorgan analysts suggest that the Large Cap BioPharma sector continues to be highly under-owned and remains below historic averages, indicating room for growth. They advocate for Bristol Myers as a valuable investment opportunity within this context.
"Large Cap BioPharma sector is highly under-owned continuing into the year and remains below historic averages," stated JPMorgan analysts.