Bausch Health Companies Inc (BHC)

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Bausch Health remains a buy at Truist on management remarks

Jan. 13, 2021 1:37 PM ETBausch Health Companies Inc. (BHC)By: Dulan Lokuwithana, SA News Editor

Truist Securities reiterates its buy rating on Bausch Health (NYSE:BHC) on management comments made at the ongoing J.P. Morgan Healthcare Conference particularly regarding the strategic alternatives being considered by the company.

Even though the price target of $24 reflects only the ‘stand-alone’ value of BHC, the analysts highlight ‘the potential for significant additional value’ with a B&L spinoff or other strategic alternatives. The shares are trading ~8.7% higher today.
At the investor conference, the management said it was preparing to spin off the eye care business, B&L, by 3Q 2021, noting that the earlier announcement in this regard led to inbound calls.
With equity issuances ruled out, BHC CEO Joseph C. Papa and the team are likely to consider asset divestitures ahead of the spin, write the analysts, adding that ‘the management is doing the right thing to strengthen the business and increase the shareholder value.’