As previously reported, Morgan Stanley analyst David Risinger upgraded Bristol-Myers (BMY) to Overweight from Equal Weight as he has become more optimistic on the immuno-oncology Opdivo + Yervoy combo in first-line lung cancer, which he notes is the largest cancer market.

After the analyst reviewed combo toxicity in select combo studies with similar dosing as Bristol's CM-227 and compared cross trial against Merck's (MRK) Keynote-021G trial that tested Keytruda + chemo, he concluded that discontinuation rates due to side effects appear roughly comparable and now thinks Opdivo + Yervoy toxicity in lung cancer is likely to be acceptable.

Risinger raised his price target on Bristol-Myers shares to $78 from $63.