Analyst Predicts 15-20% Growth in Bausch & Lomb Earnings, Upgrades Rating to Strong Buy

Morgan Stanley's Patrick Wood upgraded their rating on Bausch & Lomb (NYSE: BLCO) from Hold to Strong Buy on 2024/05/06. The analyst also raised their price target by 12.5% from $16 to $18.

Wood cited the market's underestimation of the company's "base business execution on margins" as a key driver for the rating upgrade. Additionally, Wood highlighted the potential upside risk to organic sales growth from Miebo and the product pipeline. These factors led the analyst to predict an improvement in the company's growth, with a potential increase in consensus earnings forecasts for 2025 between 15% and 20%.

Currently, 66.7% of top-rated analysts either rate BLCO as a Strong Buy or Buy, while 33.3% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Looking at BLCO's recent performance, the stock price has experienced a decline of 16.5% since the last quarterly report on 2024/03/31. Year-over-year, the stock is down 21%. During this period, BLCO has trailed the S&P 500, which has experienced a decline of 25.2%.

Patrick Wood, the Morgan Stanley analyst behind the rating upgrade, is ranked in the top 19% out of 4,575 Wall Street analysts by WallStreetZen. Wood specializes in the Healthcare sector and boasts an average return of 20.1% with a win rate of 52.6%.

Bausch + Lomb Corporation, founded in 1853 and headquartered in Vaughn, Ontario, Canada, offers a wide range of eye care products and pharmaceuticals. The company's portfolio includes contact lenses, lens care products, intraocular lenses, medicines for eye diseases and irritations, and surgical supplies, aids, and implants.

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