The Globe and Mail reports in its Friday edition that RBC Douglas Miehm, while maintaining his "sector perform" rating on Bausch Health, trimmed its share target by $2 to $33 (all figures U.S.). The Globe's David Leeder writes that analysts on average target the shares at $34.24. Mr. Miehm calls Bausch's fourth quarter results, released Wednesday, "mixed." Mr. Miehm says in a note: Bausch provided 2020 guidance that bracketed consensus estimates. Even though the company has guided toward nonlinear growth over 20'-22', we believe the flat to marginally higher growth suggested as per the 2020 guidance is likely to keep the growth debate in focus. Management is moving away from focusing exclusively on the significant seven products as it excludes other growth levers. On balance, we see this is a prudent approach as it should shift investor focus to what really matters in our view -- B&L and Salix. We estimate 2022 significant seven revenues of $700-million (vs. mgmt target of $1-billion) but model Trulance, Solta, etc. essentially making up the $300-million variance. However, the move, combined with some admittedly underwhelming script growth, is likely to cast doubt on the growth prospects for these products."
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