Bristol Myers Squibb offers 15-20% upside despite patent cliff fears, backed by strong pipeline and CAR-T innovations.

Bristol Myers Squibb (BMY) faces significant patent expirations, known as a patent cliff, which has led to a discounted forward P/E of 9.4x. Despite this, the company is well-positioned with a robust drug pipeline including Milvexian, Iberdomide, Cobenfy, and Sotyktu, expected to drive growth and potentially increase valuation to 10x-11x forward P/E by 2026. Additionally, BMY's advanced CAR-T therapy program, especially the zola-cel treatment for autoimmune diseases, offers long-term growth potential that is not yet reflected in its current stock price. The stock also provides a 4.3% dividend yield, making it attractive for investors looking for both income and growth.