Barclays Cut Bausch & Lomb Target to $16, Keeping Rating Neutral in Early June

Barclays lowered its price target on Bausch & Lomb (NYSE: BLCO) from $19 to $16 on June 6, maintaining an Equalweight rating. The revision reflects a more cautious outlook on the company’s near-term financial performance.

The firm trimmed its next twelve-month EBITDA forecast to $996 million, down from $1.04 billion. As a result, the valuation multiple used in their model was reduced to 10.5x EV/EBITDA, just above the current trading level but below the stock’s post-spin average of 11x.

Barclays also adjusted its sales and earnings projections. Sales estimates were shaved by less than 1% annually starting in 2025, in line with company guidance. The changes are driven in part by the expected impact of the Inflation Reduction Act and formulary shifts affecting Xiidra.

EPS estimates saw a steeper drop, down around 12% for 2025, when guidance changes and the fallout from the enVista recall are factored in. For 2026 and beyond, earnings projections have been lowered by 13–14% annually. We previously shared a bullish thesis on BLCO stock.

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Disclosure: None.