Jason Gerberry, an analyst from Bank of America Securities, reiterated the Sell rating on Bausch Health Companies (BHC – Research Report). The associated price target is $7.00.
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Jason Gerberry’s rating is based on a combination of factors, primarily concerning the future outlook of Bausch Health Companies. While the company showed strong performance with its 4Q/FY25 guidance surpassing consensus expectations, this growth is heavily reliant on the Xifaxan brand, which is facing a looming loss of exclusivity by January 2028 or earlier. This creates uncertainty about Bausch’s ability to sustain growth once Xifaxan’s exclusivity expires, as there is a lack of visible growth drivers to replace the significant revenue contribution from this product.
Additionally, the anticipated divestiture of Bausch’s eye health subsidiary (BLCO) remains unclear, with no substantive updates provided, further contributing to the uncertainty surrounding the company’s strategic direction. Compounding these concerns are upcoming debt maturities that Bausch has plans to address in the near term, but longer-term maturities may require external financing. Given these factors, the combination of dependency on a single product, lack of clear strategic execution, and financial uncertainties prompted the reiteration of the Underperform rating.
Gerberry covers the Healthcare sector, focusing on stocks such as Exelixis, Teva Pharmaceutical, and Axsome Therapeutics. According to TipRanks, Gerberry has an average return of 1.4% and a 44.60% success rate on recommended stocks.