On Monday, Morgan Stanley (NYSE:MS) adjusted its stance on Bausch & Lomb Corporation (NYSE:BLCO), downgrading the stock from Overweight to Equalweight, while setting a price target of $19.00.
The change in rating comes despite the firm's positive view of the company's recent performance, including the successful launch of MIEBO and robust organic growth in various segments.
The analyst noted that Bausch & Lomb has been performing well, taking market share and experiencing double-digit organic growth. The company's profit margins have also been consistently improving. Morgan Stanley anticipates that there could still be potential for the company to outperform the market's expectations in 2025, highlighting the company's strong position.
The downgrade was prompted by the stock's significant appreciation, having surged approximately 30% over the past year, reaching Morgan Stanley's price target.
"We do see the potential for further upside risk from here, but for the shorter-term we expect the market to digest the most recent move and work through the faster topline growth and new product launches," the analysts said.
In other recent news, Bausch & Lomb has secured $400 million in new term loans, according to a recent SEC filing. The company has also reported a significant growth in their third quarter revenues for 2024, reaching $1.196 billion, a 19% increase year-over-year.
This surge was largely driven by strong performances of products such as Miebo and Xiidra, and the contact lens segment, particularly SiHy Dailies, which saw a 79% year-over-year increase.
Following these financial results, H.C. Wainwright upgraded the stock price target for Bausch & Lomb to $23.00 from the previous target of $22.00, while Stifel maintained a Hold rating with a consistent price target of $19.00.
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