Barclays reduces Bausch & Lomb stock price target to $16

On Friday, Barclays (LON:BARC) analysts lowered the price target for Bausch & Lomb Corp. (NYSE: BLCO) stock to $16 from the previous target of $19 while maintaining an Equalweight rating. The adjustment reflects a revised evaluation of the company’s future financial performance.

The analysts cited a reduction in the company’s projected next twelve months (NTM) EBITDA to $996 million, down from an earlier estimate of $1.04 billion. This change in projections led to a decrease in the target multiple to 10.5 times EV/EBITDA, slightly above the current trading multiple of approximately 10.0 times but below the stock’s average trading range of about 11.0 times since its spin-off from Bausch Health Companies (NYSE:BHC) in 2022.

In addition to the price target adjustment, the analysts updated their sales and earnings projections. They foresee a reduction in sales projections by less than 1% per year from 2025 onwards, aligning with management’s guidance. This is attributed primarily to the anticipated impact of the Inflation Reduction Act (IRA) and formulary changes affecting Xiidra in 2025. InvestingPro analysis reveals several additional insights about BLCO’s financial health and valuation metrics. Get access to the comprehensive Pro Research Report covering 1,400+ top stocks.

The analysts also revised their earnings per share (EPS) estimates, reducing them by approximately 12% for 2025, in line with management’s revised guidance, and considering the effects of the enVista recall. The EPS estimates for 2026 and beyond have been cut by an average of 13-14% per year. While currently unprofitable, InvestingPro data indicates analysts expect the company to return to profitability this year.

In other recent news, Bausch + Lomb Corporation reported its first-quarter financial results, revealing total revenue of $1,137 million, which represents a 3.5% increase year-over-year but did not meet the anticipated $1,150 million. The company faced a net loss of $212 million, or $0.60 per share, which was significantly higher than the expected loss of $59 million. In adjusted terms, the net loss was $54 million, or $0.15 per share, below the projected income of $53 million. Additionally, the enVista recall impacted revenue by approximately $55 million and adjusted EBITDA by about $65 million. Meanwhile, H.C. Wainwright analyst Yi Chen lowered the price target for Bausch + Lomb from $20.00 to $15.00, maintaining a Buy rating despite uncertainties regarding tariffs. The company recently held its Annual Meeting of Shareholders, where all board nominees were elected, and PricewaterhouseCoopers LLP was appointed as the auditor until 2026. Bausch + Lomb also launched new eye care products, Blink Nourish and Blink Boost, in major U.S. retailers. Furthermore, they introduced Zenlens CHROMA HOA scleral contact lenses designed to correct higher-order aberrations, enhancing vision quality.

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