Stifel reiterated its Hold recommendation for Bausch & Lomb Corp. on Monday, maintaining a price target of $16 per share. The firm’s stance follows the company’s Q2 2026 results, which exceeded Wall Street expectations despite a clinical setback in its dry-eye treatment pipeline.
Bausch & Lomb reported Q2 2026 revenue of $1.39 billion, up 9.1% year-over-year and surpassing the consensus estimate of $1.37 billion. Adjusted earnings per share came in at $0.15, matching market forecasts, while adjusted EBITDA rose to $246 million, expanding margins to 17.6%. The company posted a net loss of $14 million, narrower than the $20 million loss anticipated by H.C. Wainwright.
The analyst’s outlook remains tempered by a Phase 2 clinical trial for a combination therapy targeting dry eye disease. While the treatment—pairing Xiidra and Miebo—demonstrated superiority over Xiidra alone at the Day 15 mark, it failed to meet the primary endpoint at Day 29. The FDA has accepted the Day 15 data as a valid comparison point, but the setback introduces uncertainty over the therapy’s commercial potential. Bausch & Lomb plans to advance the combined treatment into Phase 3 studies.
Stifel estimated peak net sales for the combined therapy at $700 million, cautioning that cannibalization of existing products could limit upside. The company’s market valuation stands at $6.19 billion, with trailing 12-month revenue totaling $5.32 billion.
The Hold rating contrasts with H.C. Wainwright’s more bullish stance, which raised its price target to $21 with a Buy recommendation. Bausch & Lomb’s next growth plan presentation is scheduled for November 2025.
