2015 All-America Research Team: Pharmaceuticals/Major, No. 2: Christopher Schott

Advancing one position to second place, J.P. Morgan’s Christopher Schott records his best showing on this roster since 2011.

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< The 2015 All-America Research Team

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Christopher Schott
J.P. Morgan
First-Place Appearances: 0

Total appearances: 7

Analyst debut: 2009

Advancing one position to second place, J.P. Morgan’s Christopher Schott records his best showing on this roster since 2011; he also captures third place this year in the Pharmaceuticals/Specialty sector. “While major pharma now trades at a 20 percent premium to the S&P, we see the sector entering a new product cycle with several multi-billion-dollar product launches and important pipeline disclosures in 2015 and 2016,” says Schott, 38. “Furthermore, we believe M&A will become a more central theme with the group as consolidation spreads across the sector. Along these lines we continue to see the group as well-positioned for the remainder of the year.” Schott continues to favor Bristol-Myers Squibb Co., which he considers a clear leader in the over $30 billion immuno-oncology space. “We see BMY’s Opdivo as an over $10 billion product, over time, and anticipate a strong ramp-up in sales for the drug as it launches as a treatment for lung cancer over the coming quarters,” he explains. His estimates suggest upside to consensus in 2015 and 2016, and the researcher is forecasting that Bristol-Myers’ earnings per share will increase from $1.84 in 2015 to more than $5 by 2020. His year-end target price for the stock is $75, which implies a 16.6 percent premium to its value in mid-September. “Chris is a very reliable and fundamentally sound analyst,” one investor commends.

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