Healthcare products manufacturer Bausch Health (BHC) has announced that it will reduce debt by $150 million. The company will redeem a $150 million aggregate principal amount of its outstanding 6.125% Senior Notes due 2025 on August 2, 2021.
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In March, the company had undertaken a $100 million reduction in debt through the redemption of its 7% senior secured notes due 2024. With the current redemption, Bausch Health informed that it will have redeemed a total of $650 million aggregate principal amount of debt in 2021 using cash generated from operations. (See Bausch Health stock chart on TipRanks)
Following the $100 million reduction in debt, in a note to investors on June 1, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on the stock with a price target of $55. This implies upside potential of 87.6% from current levels.
Selvaraju said that Bausch Health was steadily making its debt position more manageable. He added that the sale of B+L, if executed at a favorable price, could enable the legacy company (RemainCo) to move forward without the disadvantage of a crippling debt load.
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average Bausch Health price target stands at $40 and implies upside potential of 36.4% from current levels.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Bausch Health is currently Neutral, as the cumulative change in holdings across all 14 hedge funds that were active in the last quarter was an increase of 27.1 million shares.
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