Bristol-Myers Squibb's (BMY) lack of update on its ADEPT-2 phase-3 Alzheimer's psychosis trial or the ongoing review of other late-stage trials on its Q3 earnings call was "surprising," Morgan Stanley analysts said in a Friday note.

Bristol-Myers topped estimates for its Q3 financial results, but risks remain to the company's 2026 guidance, the analysts said.

On the positive side, there could be upside to the 2026 EPS estimate if the company manages to cut costs, as management alluded to during the Q3 call, the Morgan Stanley analysts said.

The Wall Street firm projects adjusted EPS of $5.12 for the company in 2026. Analysts polled by FactSet expect $6.05.

"We remain cautious on the revenue/EPS outlook over the course of this decade given expected headwinds from patent expiries of mature products and our view on the company's new product portfolio and pipeline," analysts said.

Morgan Stanley raised its price target to $36 from $34, but retained an underweight rating.

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