These are top 10 stocks traded on the Robinhood UK platform in July
On Thursday, Stifel analysts adjusted their outlook on Bausch & Lomb Corp. (NYSE:BLCO), lowering the price target from $17.00 to $15.00 while keeping a Hold rating on the stock. The revision follows a survey conducted by the firm that showed a more positive response from doctors regarding the company’s recalled intraocular lenses (IOLs) than was initially expected.
According to the survey results, a higher number of doctors than predicted are willing to resume using Bausch & Lomb’s IOLs once they become available again, suggesting that the long-term impact on the company might be less severe if safety issues are adequately addressed. The analyst noted that if the recall continues through the end of 2025, it could result in approximately a 1.5 percentage point drag on the company’s revenue growth for that year, with a potential 2%-3% impact on adjusted EBITDA.
Despite the reduction in the price target, the analyst’s commentary indicated a sense of cautious optimism, highlighting that the long-term effects on Bausch & Lomb may be mitigated if the company successfully resolves the safety concerns related to the recalled IOLs. The analyst remarked that the survey findings were "less negative than anticipated," which could lead to a more positive view of the company’s shares once the IOL issues are resolved.
The analyst emphasized that the survey’s insights could change the perception of Bausch & Lomb’s stock in the future, stating, "Our survey findings were less negative than anticipated—a greater-than-expected proportion of doctors plan to resume using the recalled IOLs once available, and long-term effects may be limited if safety concerns are resolved."
Stifel’s report serves as an update to investors following the recall incident, providing new data on potential revenue and EBITDA impacts, as well as shifting sentiments among medical professionals who are key users of Bausch & Lomb’s products. The firm’s revised price target reflects these considerations while maintaining a neutral stance on the stock until the recall situation is fully addressed.
In other recent news, Bausch & Lomb Corporation announced its fourth-quarter revenue of $1,280 million, marking a 9% year-over-year increase and exceeding analysts’ expectations of $1,261 million. Despite this, the company reported a net loss of $3 million, which was better than anticipated, while adjusted net income fell short of estimates. Additionally, the company has set its revenue guidance for 2025 between $4,950 million and $5,050 million, with an expected adjusted EBITDA of $900 million to $950 million. Following these announcements, H.C. Wainwright adjusted Bausch & Lomb’s price target from $23.00 to $20.00, maintaining a Buy rating. Meanwhile, Wells Fargo (NYSE:WFC) downgraded the stock from Overweight to Equal Weight, reducing the price target from $24.00 to $15.00, citing uncertainties related to the enVista intraocular lens product recall. The recall, initiated due to complications linked to toxic anterior segment syndrome, has also led Morgan Stanley (NYSE:MS) to adjust its price target from $19.00 to $18.00, maintaining an Equalweight rating. In a separate development, S&P Global Ratings upgraded Bausch & Lomb’s issuer credit rating from ’B-’ to ’B’, reflecting a stronger credit profile than its parent company, Bausch Health. These recent developments have investors closely watching Bausch & Lomb’s efforts to address the recall’s impact and its future financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.