Cautious Outlook on Bausch Health: Sell Rating Amid Strategic Uncertainty and Tariff Concerns

Jason Gerberry, an analyst from Bank of America Securities, reiterated the Sell rating on Bausch Health Companies (BHC – Research Report). The associated price target remains the same with $5.00.

Jason Gerberry has given his Sell rating due to a combination of factors affecting Bausch Health Companies. The company’s first-quarter pharmaceutical revenue slightly exceeded expectations, but its consolidated EBITDA fell significantly short. A key concern is the lack of substantial updates on the proposed spin-off of Bausch + Lomb, which adds uncertainty to the company’s strategic direction. Additionally, Bausch Health has not quantified the potential impact of pharmaceutical tariffs, which could affect its financial performance.
Another critical issue is the exposure of Bausch Health’s Solta business in China to tariffs, as a significant portion of its sales in the Asia-Pacific region could be impacted. Although the company plans to mitigate these effects with local inventories, the long-term implications remain uncertain. Furthermore, while the company has introduced a share buyback as a capital allocation option, its primary focus remains on deleveraging, which may limit immediate shareholder returns. These factors contribute to a cautious outlook on Bausch Health’s future performance, leading to the Sell rating.

BHC’s price has also changed moderately for the past six months – from $8.170 to $5.300, which is a -35.13% drop .