Piper Sandler Downgrades Bausch Health Companies (BHC) to Underweight

Piper Sandler analyst David Amsellem downgraded Bausch Health Companies (NYSE: BHC) from Neutral to Underweight with a price target of $3.00 (from $9.00).

The analyst comments: "We are downgrading Bausch to Underweight from Neutral and lowering our PT to $3 from $9 (i.e., multiple compression is justified). With ~$9.4B in debt coming due in the 2027/2028 timeframe, along with Xifaxan losing exclusivity in January 2028 at the latest, all in the context of net debt/LTM EBITDA of ~6.5x for the Pharma business, solvency will remain top of mind despite management's best efforts to change the subject (e.g., a next-generation rifaximin formulation (RED-C) is nice to have, but the conversation is still going to come back to solvency with the predecessor product losing exclusivity). In that vein, does it matter that Bausch reported a largely in-line 2Q24 (diluted non-GAAP EPS of $0.89 on revenue of $2.4B, compared to consensus of $0.88 and $2.3B, respectively (inclusive of Bausch & Lomb (BLCO; not covered)), and reiterated its 2024 revenue and adjusted EBITDA guidance ranges for the Pharma business? No."

For an analyst ratings summary and ratings history on Bausch Health Companies click here. For more ratings news on Bausch Health Companies click here.

Shares of Bausch Health Companies closed at $6.10 yesterday.

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