Bausch + Lomb Corporation: Sell Rating Amid Financial Pressures and Uncertain Tariff Impacts

Bausch + Lomb Corporation (BLCO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Craig Bijou from Bank of America Securities reiterated a Sell rating on the stock and has a $11.00 price target.

Craig Bijou has given his Sell rating due to a combination of factors impacting Bausch + Lomb Corporation’s financial outlook. The company recently lowered its EBITDA guidance for FY25 by $50 million, primarily due to the enVista recall and a slowdown in the U.S. generics business. This adjustment reflects a significant miss in both revenue and EBITDA expectations, with the latter missing by 23% due to inventory write-offs and reduced sales.
Additionally, there is considerable uncertainty surrounding potential tariff impacts, which could result in a $60 million headwind to EBITDA in 2025. Although Bausch + Lomb has identified several mitigating strategies, the lack of inclusion of these tariffs in their guidance suggests a risk of further downward adjustments if these strategies are ineffective. These challenges, combined with a reduced price objective and lower peer multiples, contribute to the Sell rating as the company faces ongoing financial pressures.