Bausch Health downgraded at Jefferies with B+L deal catalyst removed

Jefferies analyst Glen Santangelo downgraded Bausch Health (BHC) to Hold from Buy with a price target of $8, down from $12, after the company announced the Bausch + Lomb (BLCO) process did not result in a transaction, putting a near-term separation on hold. While ownership of B+L may facilitate a debt restructuring, the firm had been recommending Bausch shares on the view that the timing of generic Xifaxan was misunderstood and that the B+L separation would create value for shareholders. With a B+L deal on hold, this removes the major near-term catalyst, the analyst tells investors.