Bausch + Lomb: Solid Q1 Beat and Pharma Momentum Offset by Spin-Off Uncertainty, Supporting Hold Rating

Needham analyst David Saxon has maintained their neutral stance on BLCO stock, giving a Hold rating on April 23.

David Saxon has given his Hold rating due to a combination of factors tied to both operating performance and corporate structure. He acknowledges that first-quarter 2026 revenue exceeded expectations, helped in part by favorable foreign exchange, and that EBITDA also surpassed consensus. He also notes that the pharmaceuticals division outperformed, with Xiidra demonstrating stronger-than-anticipated momentum and now projected to deliver low double-digit growth instead of the previously assumed mid-single-digit pace.

At the same time, Saxon highlights that year-over-year margin expansion, supported by disciplined SG&A spending, points to improving efficiency across the business. Despite this constructive start to the year, he keeps a neutral stance because there is still insufficient clarity around Bausch + Lomb’s planned separation from its parent, Bausch Health Companies. This structural uncertainty tempers the otherwise positive fundamentals, leading him to maintain a Hold rather than move to a more decisive rating.

In another report released on April 23, Barclays also reiterated a Hold rating on the stock with a $20.00 price target.