Morgan Stanley reiterated an Overweight rating and $21 price target on Bausch + Lomb (BLCO), saying its CVS (CVS) commercial agreement over Xiidra ending is probably a good thing. Given that such a move was well anticipated, the firm understands that management still expects Xiidra to grow revenues in 2026, and while total prescriptions will be lower, the revenue impact is very modest given the big gross tot net dynamics here on low actual pricing, the analyst tells investors in a research note. The firm added that Xiidra margins overall should move up, marking a solid signal around pricing discipline within the industry overall.
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