- RBC Capital markets initiated coverage on Bausch + Lomb Corp BLCO with an Outperform rating and a $22 price target.
- The analysts see B+L as a diversified ophthalmology company with strong brand equity, reaping the rewards of over $2 billion of investment since 2018 through several new product launches and expected margin improvement.
- The company is a well-established eye health company operating in the $50 billion vision care, surgical, and pharmaceutical markets.
- RBC notes that some gaps in its product suite should be resolved over ~24 months, permitting B+L to better leverage its high brand equity and achieve or may exceed its targeted 4-5% revenue growth over time.
- "We recognize the shares may be volatile in the near-term based on the outcome of the BHC Xifaxan patent trial (decision likely by mid-August), which will potentially influence the timing/decision regarding the expected 80% BLCO distribution by Bausch Health Companies Inc BHC." RBC writes.
- Price Action: BLCO shares are down 3.79% at $15.48 during the market session on the last check Tuesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.