Bristol Myers Squibb (NYSE:BMY) caught investor attention after the company announced its Alzheimer’s candidate, BMS-986446, received Fast Track Designation from the FDA. This regulatory milestone highlights momentum in the company’s neuroscience pipeline.

Bristol Myers Squibb’s share price jumped 5.5% on news of the FDA's Fast Track recognition for its Alzheimer’s candidate. However, when looking at a broader time frame, momentum has faded with a one-year total shareholder return of -10%. Recent innovative moves and direct-to-patient initiatives indicate the company is still taking bold steps in pharma. Still, the broader narrative is one of cautious optimism as investors monitor both pipeline progress and value opportunities within the sector.

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But with shares still down for the year despite this regulatory win, the core question remains for investors: is Bristol Myers Squibb undervalued at these levels, or has the market already factored in hopes for future growth?

Most Popular Narrative: 13.7% Undervalued

Bristol-Myers Squibb’s widely followed narrative assigns a fair value above the latest close, with analysts projecting more upside than the market currently prices in. This sets the stage for deeper quantitative assumptions and market debate on where shares could head next.

Robust late-stage pipeline and ongoing life-cycle management for major brands, plus strategic partnerships (BioNTech, Philochem, Bain), expand the breadth of future regulatory approvals and label expansions. This opens additional indications and helps to offset upcoming patent expiries, which underpins top-line and earnings growth.

Want to peek inside the model fueling this fair value? Discover how a blend of rapid margin expansion, shifting profit forecasts and analyst disagreements shape the story behind this target. The consensus just might surprise you.

Result: Fair Value of $53.00 (UNDERVALUED)

However, setbacks in key drug launches or unexpected regulatory changes could quickly undermine the optimistic outlook. These factors may act as catalysts to shift investor sentiment.

Build Your Own Bristol-Myers Squibb Narrative

If you see the story unfolding differently, why not dive into the data and shape your own perspective in just a few minutes? Do it your way

A great starting point for your Bristol-Myers Squibb research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.