Mixed Performance and Market Challenges Lead to Hold Rating for Bausch + Lomb Corporation

Wells Fargo analyst Larry Biegelsen maintained a Hold rating on Bausch + Lomb Corporation (BLCO – Research Report) yesterday and set a price target of $12.00.

Larry Biegelsen has given his Hold rating due to a combination of factors surrounding Bausch + Lomb Corporation’s recent performance and market dynamics. Miebo has shown strong sales momentum, with a significant increase in weekly transaction volumes compared to the previous quarter, suggesting positive growth potential. However, despite this positive trend, Xiidra’s sales have been softer than anticipated, with first-quarter figures falling short of both estimates and consensus expectations.
Furthermore, while Miebo’s sales exceeded expectations, Xiidra’s gross-to-net adjustments and market headwinds, such as those from the Inflation Reduction Act, are likely to impact its sales negatively. The overall market share for both Miebo and Xiidra in the dry eye segment has seen slight declines, which, coupled with competitive pressures from cyclosporine products, presents challenges. These mixed results and market conditions contribute to the decision to maintain a Hold rating, indicating a cautious outlook on the stock’s immediate potential.

In another report released on June 6, Barclays also reiterated a Hold rating on the stock with a $16.00 price target.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BLCO in relation to earlier this year.