BLCO Stock Forecast & Price Target

Bausch & Lomb has demonstrated a robust upward trajectory in its financial performance, with management raising its 2025 revenue guidance to $5,050-5,150 million, corresponding to a 5-7% constant currency growth, and an increased adjusted EBITDA expectation of $860-910 million. Notably, the company has achieved significant prescription growth, particularly with MIEBO showing a remarkable 111% year-over-year increase and XIIDRA reflecting 12% year-over-year growth, contributing positively to its revenue base. The company’s successful momentum in premium intraocular lenses, alongside favorable foreign exchange impacts, underscores its strong market positioning and enhances the outlook for sustained growth.

Bausch & Lomb's financial outlook is under pressure due to significant challenges in maintaining its competitive position in the ophthalmology market, particularly as management noted pricing pressures on key products like XIIDRA. The company's limited product pipeline and past insufficient investments while a subsidiary of Bausch Health may hinder its ability to secure regulatory approvals and new product acquisitions, creating barriers to sustained revenue growth. Additionally, high levels of net debt and uncertainties around consumer spending in the context of macroeconomic factors further exacerbate the company's financial risks, contributing to a cautious investment sentiment.