BLCO Stock Forecast & Price Target

Bausch & Lomb demonstrated a robust performance in 3Q25, achieving 6% revenue growth on a constant currency basis across all three segments: Vision Care, Surgical, and Pharmaceuticals, with respective revenues of $736 million, $215 million, and $330 million, reflecting year-over-year growth rates of 8%, 4%, and 8%. The company's strong portfolio in ophthalmic pharmaceuticals, particularly through products like MIEBO, showed significant promise with a remarkable 110% year-over-year increase in prescriptions, positioning it to potentially surpass the sales of XIIDRA by the end of 2025. Additionally, the management's optimistic view on premium intraocular lenses (IOLs) and the positive impact of favorable foreign exchange rates, amounting to $19 million, contributed to an overall positive outlook for Bausch & Lomb, despite reporting a net loss that was less than market expectations.

Bausch & Lomb faces significant challenges in maintaining its competitive position within the ophthalmology market, primarily due to the highly competitive landscape and reliance on promotionally sensitive customers. The company's limited product pipeline and the high leverage following its acquisition deal with Novartis for Xiidra may hinder its ability to pursue further growth opportunities through mergers and acquisitions. Additionally, macroeconomic uncertainties concerning elective procedures and consumer spending could negatively impact demand for key products, contributing to an overall negative outlook for the company's stock performance.