Bausch Health price target lowered to $14 from $16 at Jefferies

Jefferies lowered the firm’s price target on Bausch Health (BHC) to $14 from $16 and keeps a Buy rating on the shares ahead of the company reporting Q4 results on February 22. The firm continues to believe the near-term outlook is stable and views Xifaxan litigation as “the primary driver of the stock.” Jefferies, which still thinks Bausch will prevail in Xifaxan litigation, argues that a positive ruling in the next two or so months would “represent the critical catalyst,” as it would increase the probability of executing the Bausch + Lomb (BLCO), adding that it expects Bausch shares to better reflect the value of the 80% B+L stake as the spin path becomes clearer.