Bausch Health Companies (BHC) PT Lowered to $14 at Stifel

Stifel analyst Annabel Samimy lowered the price target on Bausch Health Companies (NYSE: BHC) to $14.00 (from $15.00) while maintaining a Buy rating following results.

The analyst commented, "Remaining committed to the BLCO separation, BHC reported a lower 3Q22, with revenues of $2,046mn/Cons. $2,069mn and Adj.EBITDA of $766mn/Cons. 788mn). With the BLCO IPO bringing lower gross proceeds, one of the key moves during the quarter was a $5.594bn tender of debt, which both reduced net leverage and extended maturities for more breathing room. However, the key overhang for BHC remains the mixed Xifaxan patent decision, which has been appealed, creating a meaningful overhang on the separation. Meanwhile, BHC continued to manage all franchises (Salix-GI growing, Solta/International recovering, and OrthoDermatologics/Diversified lagging), and continued to benefit from majority ownership of BLCO. BHC trimmed guidance for revenues to $8.0-8.17bn/Cons. $8.14bn and Adj.EBITDA of $2.99-3.09/Cons. $3.09bn based solely on BLCO performance, but we do not expect any standout performances from RemainCo segments. The overhang on Xifaxan remains (60% PoS of retaining exclusivity through 2028) despite steps to overturn. Reduce TP to $14. "

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