Bausch + Lomb upgraded to Overweight at Morgan Stanley on pipeline potential

As previously reported, Morgan Stanley upgraded Bausch + Lomb (BLCO) to Overweight from Equal Weight with a price target of $21, up from $14. The firm believes that the company has the strongest pipeline within ophthalmology and represents up to a $7B per year opportunity with many of the products coming down the pipe “amongst the most interesting and disruptive within both ophthalmology and healthcare overall,” the analyst tells investors. While noting that most of the pipeline is coming in 2028 and beyond, there are “several key assets that are noteworthy” with efficiency measures driving margins up shorter-term, creating “a compelling financial profile over the next 2-3 years,” the analyst added.