These are top 10 stocks traded on the Robinhood UK platform in July
On Thursday, BofA Securities adjusted its price target on Bausch & Lomb Corporation (NYSE:BLCO) shares, reducing it to $17.00 from the previous $18.00. Despite acknowledging the company’s strong finish to the year with a 2% revenue beat in the fourth quarter and a 10% organic revenue growth for both the quarter and the year, the firm maintained its Underperform rating.
The analysts noted that the growth was largely driven by the product Miebo, which contributed approximately four percentage points to Bausch & Lomb’s growth. However, they expressed concern that the 2025 guidance, particularly for EBITDA, might have fallen short of investor expectations. This comes in the wake of Bausch & Lomb signaling lower expectations earlier in January.
The analysts emphasized that they believe the potential for stock appreciation remains constrained until there is greater clarity regarding the company’s impending separation from Bausch Health Companies Inc. (NYSE:BHC). They referenced the market’s reaction to the February 6, 2023, announcement that an acquisition of Bausch & Lomb by private equity was unlikely, which resulted in a 10% drop in the company’s stock price, underperforming the flat performance of the iShares U.S. Medical (TASE:BLWV) Devices ETF (IHI).
In their report, BofA Securities reiterated their Underperform rating and justified the lowered price objective by applying the same 10x 2026 estimated EV/EBITDA multiple on a reduced EBITDA forecast. The revised estimates have been updated to reflect the fourth-quarter results.
In other recent news, Bausch & Lomb Corporation reported better-than-expected fourth-quarter 2024 earnings, with earnings per share (EPS) at $0.25, surpassing the anticipated $0.24, and revenue reaching $1.28 billion, exceeding forecasts of $1.26 billion. The company achieved a 17% organic revenue growth for the full year 2024, with an adjusted EBITDA of $878 million, a 20% increase from the previous year. Looking ahead, Bausch & Lomb projects revenue growth between 5.5% and 7.5% for 2025, with anticipated revenue ranging from $4.95 billion to $5.05 billion.
In terms of analyst actions, JPMorgan revised its outlook on Bausch & Lomb, lowering the stock price target from $18.00 to $17.00 while maintaining a Neutral rating. The adjustment reflects concerns about the company’s ownership structure and competitive market challenges, despite a valuation multiple set at 20 times the forecasted 2026 EPS. Additionally, the company continues to focus on innovation in eye care products and technology integration, which is expected to support its future growth.
Bausch & Lomb’s dry eye portfolio, including the Mibo and Xiidra medications, has shown strong performance, with Mibo exceeding revenue expectations in 2024. The company plans to continue investments in direct-to-consumer campaigns to support these products. Recent developments also include the anticipated launch of new contact lenses and surgical products, such as the LuxLife lens in Europe, expected to drive future market share growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.