Bausch Health Companies (NYSE:BHC) stock rose ~7% on May 11, trying to pare of losses from a day ago when the stock closed -27.13% (May 10), following Q1 results.
On Wednesday, the Canadian company saw its stock price target lowered by Bank of America to $12 from $25. While, BMO Capital Markets lowered its price target on BHC to $15 from $26 but kept a Market Perform rating.
BMO Capital analyst Gary Nachman noted that the company missed Q1 EPS and revenue analysts' estimates while reducing 2022 guidance due to Omicron and Forex/inflationary pressures.
The analyst noted that the Xifaxan/Norwich trial decision in August was also a 'major overhang' for the shares.
BHC had reached a two-week-long skid to hit a new 52-week low on May 10 after the Canadian pharma company set a worse than expected 2022 guidance with its 1Q 2022 results.
Cowen analyst Ken Cacciatore noted that the BLCO shares currently trade at a multiple 'significantly below' its consumer and eyecare peers.
The analyst thinks the stock should see a more normalized multiple with stable performance and the completion of the IPO, which would give BLCO a 'clean capital structure.'