Evercore ISI Upgrades Bausch & Lomb Corp. (BLCO) to Outperform

Evercore ISI analyst Vijay Kumar upgraded Bausch & Lomb Corp. (NYSE: BLCO) from In Line to Outperform with a price target of $25.00 (from $19.00).

The analyst comments "Upgrading BLCO to Outperform • FT is the first major news source to come up with specific details, noting both TPG & Blackstone could partner to make a joint bid for the asset. We are upgrading BLCO to Outperform on the potential for a sale • The article noted that deal is expected to be valued up to $25 per share, which equates to $13.1 Bn EV and translates to ~15x EBITDA (or ~14x aEBITDA excluding SBC) • We are modeling ~7% organic for BLCO is FY25 (~4.5% base growth + 250 bps contribution from Miebo), which is inline with its vision peers o Miebo TRx trends suggest 3Q revs should be up QoQ from 2Q levels of ~42M…our est of ~250M Meibo revs in FY25 assumes similar QoQ step up in FY25 • As seen from Fig 1, BLCO’s implied takeout multiple (implied by $25 equity share price) of ~15x EBITDA is at a discount to peers (trading at high teens EBITDA on a forward basis) • From BLCO equity holders standpoint, given that shares have been range bound on parent overhang, we wouldn’t expect any roadblocks to a potential sale to PE."

For an analyst ratings summary and ratings history on Bausch & Lomb Corp. click here. For more ratings news on Bausch & Lomb Corp. click here.

Shares of Bausch & Lomb Corp. closed at $20.87 yesterday.

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