Bausch Health stock tries recovery but sees price target cut at BMO, BofA; Cowen starts Bausch+Lomb at Outperform

May 11, 2022 1:38 PM ETBausch Health Companies Inc. (BHC)BLCOBy: Ravikash, SA News Editor18 Comments

Wall Street

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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.

Meanwhile, Cowen began coverage of Bausch + Lomb (BLCO), a spinout of Bausch Health (BHC), with an Outperform rating and $35 price target following the IPO on May 6.

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.'

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