Travis Steed, an analyst from Bank of America Securities, reiterated the Sell rating on Bausch + Lomb Corporation. The associated price target remains the same with $13.00.
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Travis Steed has given his Sell rating due to a combination of factors related to Bausch + Lomb Corporation’s long-range plan and market expectations. The company’s projected revenue growth and margin targets for 2025-2028 appear optimistic and potentially represent a best-case scenario rather than a conservative estimate. This outlook contrasts with the street’s expectations, suggesting potential overestimation of future performance.
Additionally, while Bausch + Lomb aims for significant improvements in its adjusted EBITDA margin and cash flow conversion by 2028, these targets rely heavily on execution rather than innovation. This reliance on execution without new R&D initiatives introduces risk, as it assumes the company can achieve these goals without the benefit of new product developments. The current market valuation and the company’s leverage also contribute to the cautious outlook, supporting the Sell recommendation.