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Investing.com - Goldman Sachs initiated coverage on Bausch & Lomb Corp. (NYSE:BLCO) with a Neutral rating and a $16.00 price target on Wednesday.
The investment bank cited an ongoing business transition that should support accelerating organic top-line growth in fiscal year 2026, driven by new product launches and renewed commercial focus. The company has demonstrated solid performance with revenue growth of 8.8% in the last twelve months and maintains a healthy gross profit margin of nearly 60%.
Goldman Sachs also highlighted a margin recovery story for the eye health company, led by gross margin improvements through mix shift tailwinds and focused operating leverage.
The firm noted that these positive factors are partially offset by its view that the improvements are already captured in consensus estimates.
Goldman Sachs added that BLCO’s current valuation reflects the improving fundamentals balanced against the company’s elevated leverage profile and low float.
In other recent news, Bausch + Lomb Corp reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.07, which was higher than the forecasted $0.06, resulting in a positive surprise of 16.67%. Additionally, Bausch + Lomb reported revenue of $1.29 billion, exceeding the anticipated $1.26 billion. These results highlight a strong performance for the quarter. Despite the positive earnings and revenue figures, the stock experienced fluctuations in pre-market trading. However, the focus remains on the company’s ability to outperform financial forecasts. This recent development underscores the importance of monitoring earnings results for investors.
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