BLCO Stock Forecast & Price Target

Bausch & Lomb has demonstrated a positive trajectory with its contact lens market share increasing by 40 basis points year-over-year to reach 10.0%. The surgical segment reported substantial growth, with revenues of $231 million, reflecting a year-over-year increase of approximately 13% on a reported basis and 15% when adjusted for constant currency. Additionally, the company's consumer segment revenues reached $476 million in Q4, marking an 8% year-over-year increase, driven by strong performance in premium implantables and other product offerings, further indicating robust growth across its diverse eye care portfolio.

Bausch & Lomb faces a challenging outlook due to anticipated flat to low-single-digit revenue growth, which is expected to hinder both operating margin improvement and earnings per share (EPS) growth. The company is also contending with various operational risks, including competition from lower-cost contact lens providers, potential disruptions from geopolitical events, and difficulties with product launches, all of which could further impede revenue and margin performance. Additionally, the firm’s higher leverage and reliance on a lower-multiple prescription business may necessitate a valuation discount compared to peers, contributing to a negative sentiment surrounding its financial stability.