Microvast Holdings announces departure of chief financial officer
On Wednesday, JPMorgan analysts revised their outlook on Bausch & Lomb Corporation (NYSE:BLCO), decreasing the price target from $18.00 to $17.00 while maintaining a Neutral rating. The adjustment follows a review of the company’s fourth-quarter 2024 performance and its guidance for 2025.
The analysts at JPMorgan have recalculated their valuation model for Bausch & Lomb based on the latest earnings and future company projections. The new price target of $17.00 is set with an expectation of the company’s earnings per share in 2026, applying a 20 times multiple to the forecasted 2026 earnings per share (EPS).
The reduction in the price target reflects several concerns highlighted by the analysts. They pointed to potential risks associated with the ownership structure and its relationship with Bausch Health. Additionally, they noted the challenges of operating within highly competitive markets that are expected to grow at a low-single-digit compound annual growth rate (CAGR). InvestingPro analysis reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 0.7, and has not been profitable over the last twelve months.
Moreover, the analysts expressed reservations about Bausch & Lomb’s performance, referring to it as "mixed execution." This indicates that while there may be some positive aspects to the company’s operations, there are also areas where the company has not met expectations or industry standards.
The valuation multiple of 20 times the estimated 2026 EPS represents a slight discount compared to Bausch & Lomb’s industry peers. This discount is attributed to the aforementioned risks and competitive pressures, which could potentially impact the company’s financial performance and market position in the coming years.
In other recent news, Bausch + Lomb Corp reported stronger-than-expected financial results for the fourth quarter of 2024. The company achieved an earnings per share (EPS) of $0.25, surpassing the anticipated $0.24, while revenue reached $1.28 billion, exceeding the forecasted $1.26 billion. This performance is part of a broader trend, with Bausch + Lomb demonstrating robust growth throughout 2024, achieving a total annual revenue of $4.791 billion, marking a 17% organic growth. The company’s adjusted EBITDA also rose by 20% to $878 million, highlighting its operational strength.
Looking forward, Bausch + Lomb has provided positive guidance for 2025, projecting revenue growth between 5.5% and 7.5%. The company anticipates revenue to be between $4.95 billion and $5.05 billion and projects an adjusted EBITDA range of $900 million to $950 million. Recent product launches, particularly in the dry eye segment, have been successful, with products like MIBO showing strong results. Analysts have noted the company’s continued innovation in eye care products and technology integration.
In terms of analyst activity, Bausch + Lomb’s stock has seen positive sentiment, reflecting confidence in the company’s performance and future prospects. The company remains focused on expanding its market share and enhancing its product offerings, which include developments in contact lenses and surgical products. These recent developments underscore Bausch + Lomb’s commitment to growth and innovation in the eye care industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.