Cautious Outlook for Bausch + Lomb: Hold Rating Amid Mixed Performance and Challenging Guidance

Analyst Thomas Stephan of Stifel Nicolaus maintained a Hold rating on Bausch + Lomb Corporation, with a price target of $14.00.

Thomas Stephan has given his Hold rating due to a combination of factors surrounding Bausch + Lomb Corporation’s recent performance and future outlook. The company’s third-quarter results were mixed, with revenue growth slightly missing expectations while adjusted EBITDA exceeded them. This performance was influenced by strong sales of Miebo, although other segments like Contact Lenses and Consumer fell short of forecasts.
Looking ahead, Thomas views the company’s guidance for the fourth quarter as challenging. Achieving the revenue and EBITDA targets would require significant improvements, which may be difficult given the current market conditions. Additionally, while there are positive developments such as the recovery of enVista IOLs and potential catalysts from the upcoming Investor Day, these are balanced by concerns over market dynamics and segment performance. As such, Thomas remains cautious and maintains a Hold rating, suggesting a wait-and-see approach for investors.